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

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Repurchase agreements, also known as repos, are a common funding source for securities service firms and investment banks. In a repo, one party sells a security to another party with the agreement to repurchase it at a later date for a slightly higher price. This allows the seller to receive cash for the sale and the buyer to earn a small return on their investment. Repurchase agreements can be a low-risk way for firms to access short-term funding.

The Largest Source of Funding for Securities Service Firms and Investment