repurchase agreement

noun

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.

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. Abbreviation: RP

Nearby words

repulse, repulsion, repulsive, repulsively, repurchase, repurchase agreement, repurpose, reputable, reputation, repute, reputed

Origin of repurchase agreement

First recorded in 1920–25

Also called repo.

Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019

British Dictionary definitions for repurchase agreement