Arbitrage of assets that are probably, but not necessarily, equivalent; esp., arbitrage of corporate stock in a potential merger or takeover, whereby the target company’s stock is bought and the acquiring company’s stock is sold simultaneously.
Purchase of a security that, having no restriction other than the payment of money, is exchangeable or convertible within a reasonable time to a second security, with a simultaneous offsetting sale of the second security. — Also termed convertible arbitrage.
The simultaneous investment in a currency and execution of spotand forward-rate foreign-exchange contracts to take advantage of exchange-rate and interest-rate differentials between currencies without assuming foreign-exchange risk.
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Purchase of a commodity against a present sale of the identical commodity for a future delivery; esp., the simultaneous buying and selling of securities for immediate delivery and future delivery, with the hope of profiting from the difference in prices.
A municipal bond, the proceeds of which are invested in bonds paying a higher yield than that paid by the municipality on its own bonds. • Under the Internal Revenue Code, the tax-free aspect of municipal-bond income may be lost if the bonds are classified as arbitrage bonds. See ARBITRAGE. [Cases: Internal Revenue 3132.10. C.J.S.
The simultaneous purchase of a currency in one market and sale of it in another to take advantage of differences or fluctuations in exchange rates.
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arbitrage (ahr-b[schwa]-trahzh), n. The simultaneous buying and selling of identical securities in different markets, with the hope of profiting from the price difference in those markets. — Also termed space arbitrage. [Cases: Securities Regulation 53.17(4). C.J.S. Securities Regulation § 153.] — arbitrager (ahr-b[schwa]-trazh-[schwa]r), arbitrageur (ahr-b[schwa]-trah-zh[schwa]r), n. covered-interest arbitrage. The simultaneous investment in a currency and
risk arbitrage 风险套利 指涉及风险的套利活动，尤其公司收购或接管中的套利。投机者买进目标公司的股票，同时卖出作为收购者或接管者的公司的股票，期待在前者的价格预期上涨和后者的价格预期下跌中获利。