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Overnight Repo

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Overnight repo
A repurchase agreement with a term of one day.

overnight repo
A repurchase agreement in which securities are sold provided that they will be repurchased on the following day. Financial institutions use overnight repos as a means of raising short-term money for financing inventories.

Overnight Repo
A practice in which a bank or other financial institution buys securities with the proviso that the seller repurchase the same securities the following day. Financial institutions do this in order to raise short-term capital. See also: Overnight loan.


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