Repo. Repurchase Agreement

Repo. Repurchase Agreement Actually, a sale – repurchasement agreement, which consists in the sale and subsequent buy – back at an agreed price of the same security. The seller is paid the price in full and he has thus access to ready money, while he does not lose the security. The repurchase price is slightly higher to enable the buyer to make a little profit. Repos are short term lending and are usually transacted between banks.

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