repo
UK[ˈriːpəʊ]US[ˈriːpoʊ]
n
An arrangement in which a dealer sells securities to an investor and agrees to repurchase them at a specified price on a later date.
n
The transaction or contract involved in such an arrangement.
n
Short for 'repossession', the act of taking back property when a buyer fails to make payments.
Morpheme Breakdown
re
po
re
again
po
from 'purchase' or 'possession'
Etymology
The word 'repo' is a modern financial and commercial clipping, originating in 20th-century American English. It primarily functions as a shortened form of two distinct terms: 'repurchase agreement' in finance and 'repossession' in commerce. The prefix 're-', from Latin, carries its core meaning of "back" or "again," which is central to both concepts—returning securities or taking property back. The clipped element '-po' derives from the key nouns 'purchase' or 'possession', succinctly capturing the object of the transaction. This efficient compounding reflects the jargon-driven need for brevity in specialized fields like banking and law.
Analysis
Structure: re (again) + po (from 'purchase' or 'possession')
- re: Latin origin, a prefix meaning "again, back".
- po: A clipped form from the English words 'purchase' or 'possession', indicating the core action of the transaction or act.
Examples
The central bank injected liquidity into the market through an overnight repo.
His car was taken by the finance company due to a repo order.
They used government bonds as collateral in the repo transaction.