reverse repo definition

reverse repo

Arrangement where a dealer or broker agrees to buy a security and sell it to a customer (investor) at a higher price on a specified date. These agreement are in effect loans from dealers to investors, collateralized by the securities bought. See also repurchase agreement (repo).

reverse repo is in the Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.

This content can be found on the following page:

http://www.businessdictionary.com/definition/reverse-repo.html