repurchase agreement

American  

noun

1. a contract between a dealer, as a bank, and an investor, whereby the investor purchases securities with the promise that they will be bought back by the dealer on a designated date, for which the investor receives a fixed return.

2. a contract between a buyer and a seller whereby the seller agrees to repurchase the item sold after a specified length of time or amount of use. RP

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repurchase agreement British  

noun

1. Sometimes shortened to: repo.  an agreement in which a security or asset is sold and later repurchased at an agreed price to raise ready money

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Etymology

Origin of repurchase agreement

First recorded in 1920–25

Example Sentences

The company intends to use the $1 billion investment for an accelerated share repurchase agreement.

From Barron's

Pinterest said it expects to use the proceeds from the investment to repurchase shares of its common stock through a $1 billion accelerated share repurchase agreement.

From Barron's

And he notes the Fed has ways to cope with temporary disruptions, such as the Standing Repurchase Agreement facility, which it didn’t have in 2019 when the repo market suffered temporary shocks from liquidity shortages.

From Barron's

And he notes the Fed has ways to cope with temporary disruptions, such as the Standing Repurchase Agreement facility, which it didn’t have in 2019 when the repo market suffered temporary shocks from liquidity shortages.

From Barron's

Press reports indicate that U.S. banks might provide some $5 billion through a repurchase agreement to help Argentina meet interest and principal payments due in January.

From The Wall Street Journal