reverse repurchase agreement
noun[C]
ukus(alsoinformalreverse repo)STOCK MARKET,FINANCE
anagreementtobuybonds,shares, etc. and tosellthem backlaterto theoriginalsellerat ahigherprice. Areverserepurchaseagreementis the same as a repurchaseagreement, but from thepointofviewof thebuyerratherthan theseller:
Areverserepurchaseagreementis atransactionin whichfundsareeffectivelyloanedon ashort-termbasis.
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repurchase agreement