What is buying in?

Buying in is an expression that describes the process that occurs when an investor has to buy securities in the open market because a seller, with whom they have an agreement, has failed to deliver the agreed securities at the agreed price.

Where have you heard about buying in?

You may have come across the expression if you have been let down by a seller of securities and have to buy in yourself. Or you may have read about it in an investment guide. Financial media may refer to buying in from time to time.

What you need to know about buying in.

Buying in occurs when a seller fails to deliver securities to a buyer at the time and price agreed and the buyer is forced to purchase those securities in the open market. On an organised exchange, the seller will be notified with a buy-in notice. Failure to respond to such a notice by delivering the securities in question may mean the buyer acquires those securities at current market prices, with the seller liable to pay any excess on the price originally agreed. On an exchange, the buying-in process is sometimes managed by the buyer's broker.

Find out more about buying in.

Buying in is a response to a failed transaction in securities markets. Learn more about securities markets here.