Buy-In

What is a 'Buy-In'

A buy-in is when an investor is forced to repurchase shares because the seller did not deliver the securities in a timely fashion, or did not deliver them at all.

BREAKING DOWN 'Buy-In'

Those who fail to deliver the securities will be notified with a buy-in notice. Failure to answer the buy-in notice means the broker can buy the securities and deliver them on your behalf. You must then pay back the broker at whatever price.

RELATED TERMS
  1. Buy-In Management Buyout - BIMBO

    A form of a buyout that incorporates characteristics of both ...
  2. Best To Deliver

    The security that is delivered by the short position holder in ...
  3. Cheapest to Deliver - CTD

    In a futures contract, the cheapest security that can be delivered ...
  4. Fail

    In common trading terms, if a seller does not deliver securities ...
  5. Failure To Deliver

    An outcome in a transaction where one of the counterparties in ...
  6. Free On Board - FOB

    A trade term requiring the seller to deliver goods on board a ...
Related Articles
  1. Stock Analysis

    Retailers Buying Back Stock

    American companies have announced $258 billion in share repurchase plans so far this year. Find out which retail companies are buying.
  2. Active Trading Fundamentals

    Short Selling: What Is Short Selling?

    Investopedia Explains: The fundamentals of short selling and the difference between going long or short on an investment.
  3. Investing

    Wal-Mart's Share Repurchase Isn't All Good

    Wal-Mart announced huge internal investments along with an aggressive share repurchase program that isn't as good as it initially sounds.
  4. Brokers

    Is Your Broker Acting In Your Best Interest?

    Learn the clues you'll need to determine whether you've chosen a reputable professional.
  5. Stock Analysis

    Special Dividends Trump Share Repurchases Every Time

    Let's look at share repurchases to demonstrate why special dividends are far superior to buybacks.
  6. Entrepreneurship

    Reasons to Get Your Personal Finances in Order Before Starting a Business

    Learn four good reasons to get your financial house in order before opening shop. Review a checklist of financial items to make sure you're on track.
  7. Investing Basics

    Impact of Share Repurchases

    Share repurchases can have a significant positive impact on an investor’s portfolio and are a great way to build investor wealth over time.
  8. Options & Futures

    Broker Or Trader: Which Career Is Right For You?

    A day in the life of a broker or trader is an exciting and varied one. Find out how to decide between these two financial professions.
  9. Stock Analysis

    Companies Whipping Out Wallets To Buy Back Stock

    While a stock repurchase is no guarantee that a stock will increase in value, it may be a good sign that better times are ahead.
  10. Professionals

    What Does a Broker Do?

    In the investment world, broker is a term used to refer to an individual or entity that helps facilitate trading in financial securities.
RELATED FAQS
  1. How is it possible to trade on a stock you don't own, as is done in short selling?

    Understand how the process of short selling allows a person to sell a stock he or she doesn't technically own by borrowing ... Read Answer >>
  2. What tax implications are there for parties involved with a reverse repurchase agreement?

    Learn about the tax consequences that the buyer can face as a result of a reverse repurchase agreement ("reverse repo") with ... Read Answer >>
  3. Why would a company choose to repurchase in lieu of redeem?

    Learn the difference between a stock repurchase and a stock redemption, and find out about the reasons why a company might ... Read Answer >>
  4. My broker just sold securities out of my account without my permission. Is this legal?

    Your broker's actions are not legal unless he or she sold the securities under certain conditions. Let's look at the two ... Read Answer >>
  5. Which of the following statements least accurately describes the characteristics ...

    The correct answer is: d) The fact that any number of bonds may be delivered to fulfill a futures contract is an advantage ... Read Answer >>
  6. What is the difference between a repurchase agreement and reverse repurchase agreement?

    Learn how a repurchase agreement is a form of collateralized lending and a reverse repurchase agreement is a form of collateralized ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center