repur'chase agree"ment

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. Abbr.: RP Also called repo.

Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.



Related Content