Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

repurchase agreement

Read a random definition: subpermittee

A quick definition of repurchase agreement:

A repurchase agreement, also known as a repo, is a type of short-term loan. In a repo, one party sells a security to another party with a promise to buy it back on a specific date at a specific price. It's like borrowing money with a valuable item as collateral, and then paying back the loan to get the item back.

A more thorough explanation:

A repurchase agreement, also known as a repo, is a type of short-term loan agreement between two parties. In this agreement, one party sells a security to another party with a promise to buy back the security on a specified date at a specified price.

For example, let's say Company A needs some cash for a short period of time. Company A can sell some of its securities to Company B with a promise to buy them back in a week at a slightly higher price. This way, Company A gets the cash it needs, and Company B earns a profit on the transaction.

Another example is when a bank needs some cash to meet its reserve requirements. The bank can sell some of its securities to another bank with a promise to buy them back at a later date.

Repurchase agreements are commonly used in the financial industry to raise short-term funds. They are considered low-risk investments because they are collateralized by securities. If the borrower defaults on the loan, the lender can sell the securities to recover their money.

repurchase | repurchase price

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
LSD+ is ad-free, with DMs, discounts, case briefs & more.