The largest source of funding for securities firms and investment banks as an industry is repurchase agreements.

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Repurchase agreements, also known as repos, are a commonly used form of short-term borrowing in the securities industry. They involve the sale of securities by a firm with an agreement to repurchase them at a later date, often overnight. Since repos are collateralized loans, they are considered a low-risk form of financing and are a primary source of funding for securities firms and investment banks.

The Largest Source of Funding for Securities Firms and Investment