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chhaya

chhaya (Querist)
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06 September 2013 In money market "wat is repo transactions? "

Ajay Mishra

Ajay Mishra (Expert)
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06 September 2013
It is sale and repurchase transaction executed on agreement basis.Repos are classified as a money-market instrument. They are usually used to raise short-term capital

For the party selling the security (and agreeing to repurchase it in the future) it is a repo; for the party on the other end of the transaction, (buying the security and agreeing to sell in the future) it is a reverse repurchase agreement.

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