risk arbitrage

Variant of arbitrage

arbitrage definition

ar·bi·trage (är′bə träz̸h′)

noun

  1. a simultaneous purchase and sale in two separate financial markets in order to profit from a price difference existing between them
  2. 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 takeover
    in full risk arbitrage

Etymology: LME < Fr < arbitrer, to judge < L arbitrari: see arbitrate; for 2, < Fr arbitrage

intransitive verb arbitraged -·traged′, arbitraging -·trag′·ing

to engage in arbitrage

Webster's New World College Dictionary Copyright © 2009 by Wiley Publishing, Inc., Cleveland, Ohio.
Used by arrangement with John Wiley & Sons, Inc.

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