Investment Dictionary - Arbitrage
The process by which investors exploit the price difference between two exactly alike securities by simultaneously buying one at a lower price and selling the other at a higher price (therby avoiding risk). This action locks in a risk-free profit for the arbitrageur (arb) (person engaging in arbitrage) and brings the prices back into equilibrium.
If you require a definition for an investment term that
is not available on our site, please e-mail us at
.
|
If you would like to submit a definition for a
stock trading term, please e-mail us at
.
|
|
