The simultaneous purchase and sale of assets that are potentially but not necessarily equivalent in order to exploit a discrepancy in price.
- risk arbitrageur
Variant of arbitrage
- a simultaneous purchase and sale in two separate financial markets in order to profit from a price difference existing between them
- a buying of a large number of shares in a corporation in anticipation of, and with the expectation of making a profit from, a merger or takeoverin full risk arbitrage
Origin of arbitrageLate Middle English ; from French ; from arbitrer, to judge ; from Classical Latin arbitrari: see arbitrate; for 2, ; from French arbitrage