With the security pension business it concerns a contract, with which the owner of securities (pension giver) sells these to third (pension taker) for a limited time under assumption of the buy-back obligation.

The time of the return can be agreed upon from the beginning or specified later.

With a genuine security pension business the pension taker is obligated to sell the securities back again. With a false security pension business the pension taker is to be sold back entitled (however not obligated) the securities again. In the buy-back obligation of the pension giver this however nothing changes.

Security pension business serves also business banks for the refinancing (free-market policy).

See also: Buy-back agreement

Articles in category "Security pension business"

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