The purchase of a long position to offset a short position. Also, a corporation's repurchase of stock or bonds it has issued. Reasons for doing so include putting unused cash to use, raising earnings per share, increasing internal control of the company, and obtaining stock for employee stock option plans or pension plans.
a) In relation to managed funds or prescribed interests, a requirement on the investment manager to repurchase units from unitholders seeking to redeem part or all of their investment, even in cases where redemptions cannot be met by liquidating the assets of the fund; b) In relation to derivative markets, an offsetting purchase to ' cover' or liquidate a short sale.
an arrangement under which a house owner sells a house to a financier, but with an understanding that the house owner is able to repurchase the land, or has a right to repurchase the land