What Is a Repurchase Agreement? A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price. That small difference in price
What Is Repurposing? Repurposing is the use of something for a purpose other than its original intended use. Repurposing an item can be done by modifying it to fit a new use, or by using the item as is in a new way. The practice is not limited to physical items. It’s common to repurpose marketing
What Is a Request for Application (RFA)? A request for application (RFA) is a type of solicitation notice in which an organization announces that grant funding is available. A grant is a financial award awarded by the federal, state, or local government for the benefit of a project or research. An RFA informs researchers and
What Is a Request for Proposal (RFP)? A request for proposal (RFP) is a business document that announces a project, describes it, and solicits bids from qualified contractors to complete it. Most organizations prefer to launch their projects using RFPs, and many governments always use them. When using an RFP, the entity requesting the bids is
What Is a Request for Quote (RFQ)? A request for quote (RFQ), also known as an invitation for bid (IFB), is a process in which a company solicits select suppliers and contractors to submit price quotes and bids for the chance to fulfill certain tasks or projects. The RFQ process is especially important to businesses
What Is the Required Beginning Date (RBD)? The required beginning date (RBD) marks the official date by which a retirement plan participant must begin to receive required minimum distributions (RMDs) from their accounts. For example, RMDs are required for individual retirement accounts (IRAs) and 401(k) plans, which coincides with the retiree’s 72nd birthday. On March 27
What Is Required Cash? Required cash is the total amount of funds that a buyer must deliver to close on a mortgage or to finalize a refinance of an existing property. The delivery of the required cash amount typically takes place at a title company or escrow office and will vary by state location and sale type. During closing, the participants will
What Is a Required Minimum Distribution (RMD)? A required minimum distribution (RMD) is the amount of money that must be withdrawn from an employer-sponsored retirement plan, traditional IRA, SEP, or SIMPLE individual retirement account (IRA) by owners and qualified retirement plan participants of retirement age. In 2023, the age at which you must begin taking RMDs
What Is Required Yield? Required yield is the required rate of return that a fixed-income investment must provide in order for that investment to be worthwhile. The required yield is determined by the market and it sets the precedent for how current bond issues will be priced. For example, if prevailing market interest rates are
What Is Requisitioned Property? Requisitioned property is property that is involuntarily seized by a governmental authority for any reason. Requisitioned property can be taken for a number of reasons relating to the furtherance of the public good. It can be of any type, including real estate, vehicles, machinery, office equipment, or even personal property. Key
