repurchase agreement
- A formal arrangement in which the seller of securities, for example, Treasury bills, can buy them back after a set time frame; it allows the buyer to keep any interest earned on those securities
- The bank entered into a repurchase agreement, planning to buy back the securities after a month.
- The repurchase agreement allowed the buyer to keep any profit made from the interest of the securities.
- Executing a repurchase agreement can provide a short-term investment opportunity for buyers of securities.
Provide Feedback
