What is Repo?
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Answer / rohit dutta
In finance, "repo" means repurchase agreement, and the "repo rate" is the current interest rate for secured overnight or very short term secured financing involving the sale and repurchase of securities. Its how some securities positions are financed. "reverse repo" is the same transaction from the borrowers perspective.
So, those terms make sense to financiers in the securities industry. I dont know that they make sense in the automobile industry, other than "repo" which is short for "repossession". That of course is what happens when a borrower fails to make a lease or financing payment on her car. Then the "repo man" comes to take the car back as permitted for breach of the financing agreement.
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Answer / chandu
repo is a sell and repurchase" agreement.i.e a wants
investment for short term,and b wants to invest money at
short term basis,then a issues securities to b,and after
some time a repurchase the securities at high price it is
called repo
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Answer / vijesh
Repurchase agreements (RPs or repos), a Sale and Repurchase
Agreement has a borrower (seller/cash receiver) sell
securities for cash to a lender (buyer/cash provider) and
agrees to repurchase those securities at a later date for
more cash. The repo rate is the difference between borrowed
and paid back cash expressed as a percentage.
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Answer / n.pradeep
A financial transaction in which a dealer in effect borrows
money by selling securities and simultaneously agreeing to
buy them back at a higher price at a later time. The dealer
invests the money paid for the securities, hoping to get a
higher return than he owes on his obligation to repurchase
the securities. Repurchase agreements are commonly called
"repos," and they function in a way similar to a secured
loan with the securities serving as collateral. In a reverse
repurchase agreement, the dealer in effect loans money by
buying securities and agreeing to sell them back to the
customer at a higher price at a later date. In either case,
the difference between the bought and sold price of the
securities constitutes the yield on the transaction. See
dollar reverse repurchase agreement. Also see retail repos.
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Answer / shirin
repo means repurchase agreement between two parties.selling
securities to accumulate fund for short term requirement
with agreement to buy back same securitites within
specified time.
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Answer / pooja
An agreement in which one party sells a security to another
party and agrees to repurchase it on a specified date for a
specified price
Is This Answer Correct ? | 1 Yes | 4 No |
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