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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Rescission

Definition:

Rescission just means that you sell someone something and then buy it back from them.

Uh, why would you do that?

Because you have to.

Maybe because when making the sale in the first place, you violated some securities rules, and the law tells you that you have to buy back the securities—plus interest and minus any income the security paid to the buyer. Of course, since the securities are most likely bogus, it's fairly certain that you didn't pay the buyer anything anyway.