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

See Examples For:

repurchase agreement

The company said it plans to buy back $50 million worth of stock as part of an accelerated share repurchase agreement later this month.

From The Wall Street Journal ● Jun. 2, 2026

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 ● Mar. 3, 2026

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 ● Nov. 30, 2025

But the Fed has been raising other interest rates as well, including one with a dismal name: the reverse repurchase agreement, a.k.a. the reverse repo rate.

From New York Times ● Jun. 10, 2022

Rates to borrow in the crucial overnight repurchase agreement market surged in Sept. 2019, which analysts attributed to bank reserves falling too low as the Fed ran down its balance sheet from Oct.

From Reuters ● May 31, 2022