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Repo 105

Definition
An accounting maneuver that allows a company to reclassify a short-term loan as a sale to make its balance sheet look more sound. Company A might take out a loan from company B, using some of its assets as collateral. When the loan is repaid, company A can claim that it sold the assets to company B and then bought them back. This maneuver can allow a company to conceal how dependent it is on debt.

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