Repurchase agreement

Repurchase agreement

A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is the sale of securities together with an agreement for the seller to buy back the securities at a later date.

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Part of Speech: noun
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Industry/Domain: Financial services
Category: Stocks & securities
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Related terms

repurchase agreement

Banking; Investment banking

(1) Agreement whereby commercial banks temporarily borrow liquidity from the central bank. Under a repurchase agreement, the Swiss National Bank (or equivalent) will buy a ...

repurchase agreement

Economy; International economics

An agreement to sell a security for a specified price and to buy it back later at another specified price. A repo is essentially a secured loan.

repurchase agreement

Financial services; Private equity

An agreement in which a holder of shares agrees that the person from whom it purchased the securities may repurchase them in certain events. In venture capital rounds, founders ...

repurchase agreement

Financial services; Stocks & securities

A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is the sale of securities together with an agreement for the seller to buy back the securities ...

repurchase agreement

Financial services; General Finance

An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. Also called a repo, it ...

repurchase agreement

Financial services; Commodity exchange

A transaction in which one party sells a security to another party while agreeing to repurchase it from the counterparty at some date in the future, at an agreed price. Repos ...

above par

Financial services; Stocks &securities

If bonds are re-sold on the secondary market, and if interest rates are lower that the bond's coupon rate, the bond will be sold at a premium, or above par.

P/E ratio

Financial services; Stocks &securities

The ratio of a company's current price per share and average earnings per share. The former is divided by the latter. A high ratio suggests high growth potential in the future.