repurchase

repurchase
The purchase from an investor of a unit-trust holding by the trust managers. (repurchase agreement; repo) An agreement (in full a sale and repurchase agreement) in which one party sells a financial asset to another on terms that provide for the seller to buy it back later at an agreed price. The seller is paid in full and makes the agreement to raise ready money without losing the holding. The buyer negotiates a suitable repurchase price to enable a profit to be earned equivalent to interest on the money involved. Repurchase agreements originated in arrangements between the US Federal Reserve Bank and the money market, but are now widely used by large companies in the USA and also in Europe. Repos may have a term of only a few days - or even overnight. See also retail repo

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  • repurchase — Ⅰ. repurchase UK US /ˌriːˈpɜːtʃəs/ verb [T] FINANCE, STOCK MARKET ► to buy back shares, bonds, etc. that you previously sold: »Our objective is to use surplus cash to repurchase shares. Ⅱ. repurchase UK US /ˌriːˈpɜːtʃəs/ noun [C or U] also… …   Financial and business terms

  • repurchase — re·pur·chase 1 /ˌrē pər chəs/ vt chased, chas·ing: to buy back repurchase shares of stock repurchase 2 n: the act or an instance of purchasing something again or back; specif: a corporation s buying back of some of its stock at market price (as… …   Law dictionary

  • Repurchase — Re*pur chase (r?*p?r ch?s; 48), v. t. To buy back or again; to regain by purchase. Sir M. Hale. [1913 Webster] …   The Collaborative International Dictionary of English

  • Repurchase — Re*pur chase, n. The act of repurchasing. [1913 Webster] …   The Collaborative International Dictionary of English

  • repurchase — [spelling only] …   English World dictionary

  • repurchase — repurchaser, n. /ree perr cheuhs/, v., repurchased, repurchasing, n., adj. v.t. 1. to buy again; regain by purchase. n. 2. the act of repurchasing. adj. 3. of or pertaining to repurchase: a repurchase contract. [1585 95; RE + PURCHASE] * * * …   Universalium

  • repurchase agreement — ( RP) A form of secured, short term borrowing in which a security is sold with a simultaneous agreement to buy it back from the purchaser at a future date. The purchase and sales agreements are simultaneous but the transactions are not. The sale… …   Financial and business terms

  • repurchase agreement — n: a contract giving the seller of securities (as Treasury bills) the right to repurchase after a stated period and the buyer the right to retain interest earnings Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. repurchase agreement …   Law dictionary

  • repurchase agreement — Under Title 11 U.S.C. Section 101: (47) The term repurchase agreement (which definition also applies to a reverse repurchase agreement) (A) means (i) an agreement, including related terms, which provides for the transfer of one or more… …   Glossary of Bankruptcy

  • repurchase of shares — Under Chapter VII of Part V of the Companies Act 1985, a company can repurchase its own shares whether or not they are redeemable. The procedure requires shareholder approval and the appropriate power in the Articles of Association. The price… …   Law dictionary

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