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buy-in

Definition 1

Contracting: Practice of submitting an offer substantially below estimated costs in the hope of escalating the price after award of the contract, or to recover losses from the subsequent contracts.

Definition 2

Securities trading: Making purchase of a security to cover a previous sale of the same security. In case the seller is unable to deliver on the due date, the buyer can buy the security from some other seller and the original (defaulting) seller will have to make up the price difference. Also called buying-in.

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