arbitrageur


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Arbitrageur

One who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets. The arbitrageur profits by simultaneously purchasing and selling these securities to take advantage of pricing differentials (spreads) created by market conditions. See: Risk arbitrage, convertible arbitrage, index arbitrage, and international arbitrage.

Arbitrageur

A trader who practices arbitrage. That is, an arbitrageur attempts to profit from inefficiencies in price by making transactions that offset each other. For example, one may buy a security at a low price, and, within a few seconds, re-sell it to a willing buyer at a higher price. Arbitrageurs can keep prices relatively stable as markets attempt to resist their attempts at price exploitation. They often use computer programs because their transactions can be complex and occur in rapid succession.

arbitrageur

One who engages in arbitrage. Also called arb.

arbitrageur

a person or firm which purchases SHARES in a company and other FINANCIAL SECURITIES in the hope of making a windfall profit. Arbitrageurs deliberately put a company into ‘play’; that is, by making strategic share purchases in the company the arbitrageur fuels SPECULATION that a TAKEOVER BID is in the offing, causing the company's share price to rise. The arbitrageur then sells off his stake at a suitable profit. See ARBITRAGE.
References in periodicals archive ?
They are tax-neutral arbitrageurs and trade for profits.
Institutional limits on arbitrage prevent arbitrageurs from trading away information inefficiencies that result not from market risk, but from the structure of the institutions through which the arbitrageurs act.
The arbitrageur knows that--despite a temporary deepening of the mispricing--the price of the asset will revert to intrinsic value at [t.
Equilibrium and Welfare in Markets with Financial Constrained Arbitrageurs.
Such an opportunity cannot persist as arbitrageurs will take advantage of the mispricing until (2a) holds.
According to the standard textbook treatment, if a depositary receipt sells at a discount in a frictionless market, an arbitrageur would buy the underpriced depositary receipt and short sell the stocks in the underlying index.
When such events take place, trades by some group of investors can end up destabilizing markets unless Merton Miller's arbitrageurs can stand up to the herd and take advantage of it.
In this case, the back-end price determined by the legal system is higher than the minimum price necessary to induce arbitrageurs to buy a controlling interest.
I have always understood my responsibility as a director and officer to be to pursue the interests of Sherritt and thereby maximise the long term value of Sherritt's securities, not to protect the short term position of arbitrageurs whose strongest interest is in Sherritt's securities performing poorly.
Shareholder activists and arbitrageurs may have a powerful new weapon in their arsenals, if courts uphold the validity of shareholder proposals to amend corporate bylaws to require particular kinds of corporate action, such as the dismantling of a poison pill plan.
These are useful for the financial activists such as investment bankers, arbitrageurs, venture capitalists, company management, and control shareholders.
breed of arbitrageurs that look to build shareholdings in investment trusts