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

---

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

---

Etymology

Origin of repurchase agreement

First recorded in 1920–25

Example Sentences

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

The company intends to use the $1 billion investment for an 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

Until then, investors are also likely to continue to make use of the Federal Reserve’s reverse repurchase agreement facility, which is seeing daily demand of around $2.25 trillion.

From Reuters • Apr. 24, 2023

Big players posted them as collateral for short-term loans in what’s known as the “repo” market, short for repurchase agreement.

From New York Times • Dec. 10, 2021