arbitrage arbitrage  /ˈɑr bɪ ˌtrɑʒ/

Definition(s):

  1. (n) a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
  2. (v) practice arbitrage, as in the stock market

Derived Word(s)

Usage(s):

  1. Merger arbitrage is a gamble only for high rollerspeople with the wealth and insouciance to risk millions on a single transaction.
  2. And it turns out that even Charles Ponzi based his scheme on an arbitrage play that he truly believed would, with enough resources, turn a real profit for his investors.
  3. Speculation created an enormous arbitrage opportunity as oil bottomed out in recent weeks.

News

  1. Bernanke Begets $602,000 Risk-Free Chile Arbitrage: Andes Credit

    Ben S. Bernanke has inadvertently created the biggest arbitrage opportunity in the Chilean bond market in 20 months.
    on June 21, 2013     Source: Bloomberg

  2. Trench Coats: Cloudy With A Chance Of Stylish

    Style Arbitrage
    on June 20, 2013     Source: Forbes

  3. China Says Trade Figures Inflated by Arbitrage With Hong Kong

    China said data on trade with Hong Kong were inflated by arbitrage transactions that skirted rules, the government’s most explicit acknowledgment that export and import figures this year were overstated.
    on June 18, 2013     Source: Bloomberg

Quotes

  1. "If you don't have a coordinated approach to regulatory (systems)...... then there's the risk of regulatory arbitrage," Deutsche Bank Chief Executive Josef Ackermann said.
    on Jun 27, 2010 By: Josef Ackermann Source: Reuters

  2. "It is important that member states act together and we design a European regime to avoid regulatory arbitrage and fragmentation both within the EU and globally," said Mr Barnier.
    on May 19, 2010 By: Michel Barnier Source: Telegraph.co.uk

  3. French Economy Minister Christine Lagarde said, "We were all in agreement that it had to be a universal taxation or universal levy or instrument to avoid the risk of arbitrage."
    on Feb 6, 2010 By: Christine Lagarde Source: Moneycontrol.com

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