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Arbitrage - Law Dictionary Search Results

Home Dictionary Name: arbitrage

arbitrage

arbitrage [French, literally, arbitration, decision-making] 1 : the purchase of a security, commodity, or foreign currency in one market for the purpose of immediately selling it at a higher price in another market 2 : the purchase of the stock of a takeover target esp. for the purpose of selling it to the raider for a profit ...


Arbitrage

Arbitrage, means the simultaneous buying and selling of identical securities in different markets, with the hope of profiting from the price difference in those markets, Black Law Dictionary 7th Edn., p. 99....


arbitrageur

arbitrageur or ar·bi·trag·er [Ä r-bə-trÄ -zhər] n : one that practices arbitrage ...


spread

spread 1 a : the difference between any two prices for similar articles [the between the list price and the market price of an article] b : the difference between the highest and lowest prices of a product or security for a given period c : the difference between bid and asked prices (as of a stock) 2 a : a simultaneous put option and call option in which the put price and the call price differ so that no profit is made unless the price falls below or rises above the put or call price respectively by more than enough to cover the cost of the option ;also : the difference between the put price and call price b : a transaction in which a participant hedges with simultaneous long and short options in different commodities or different delivery dates in the same commodity 3 : an arbitrage transaction operated by buying and selling simultaneously in two markets when there is an abnormal difference in price between the two markets ;also : the difference in price 4 : the differenc...


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