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 ?
The welfare analysis of Gromb and Vayanos (2002) shows that arbitrageurs may not take on an optimal level of risk, in part because they fail to internalize the effect on prices of changing their positions.
It is easy to understand how arbitrageurs can create practical difficulties for bookmakers, but it is hard to accept the argument that arbitrage is self-evidently wrong or that arbitrageurs are self-evidently bad.
They are tax-neutral arbitrageurs and trade for profits.
significant discount and will also mean that the arbitrageurs will have to find
Noise trader risk similarly reduces arbitrage effectiveness because arbitrageurs bear the risk that noise traders will continue to be irrational, therefore maintaining, or even increasing, the mispricing.
Arbitrageurs routinely pour billions into the market to squeeze out a "plus.
To harness the exponentially increasing amount of "young money" around, museums everywhere started up junior collectors groups so that, at the height of the '80s, the massed army of contemporary-art collectors included old-liners entranced by new art (like Jerry Elliott and Elaine Dannheisser); recently minted multimillionaires who realized, like Broad, that "it's stimulating to meet people outside the business world, who have a different way of looking at life," and soon discovered the social-status possibilities of collecting; and the young investment bankers and arbitrageurs.
Armies of under-employed City advisors, lawyers, arbitrageurs, bankers, analysts, etc, salivate over plans, advice and strategies.
For one thing, financial markets are not complete and frictionless, so arbitrage in general is risky and costly In addition, it is not realistic to assume that the number of informed arbitrageurs or the supply of financial resources they have to invest in arbitrage strategies is limitless.
In recent arbitrage models developed by, inter alios, Grossman and Miller (1988), De Long, Shleifer, Summers, and Waldmann (1990) and Campbell and Kyle (1993), arbitrage is generally less than perfect because arbitrageurs face either fundamental or noise trader risk.
In a merger that takes several months to close, sometimes arbitrageurs will wind up buying and selling the shares involved amongst themselves.
The principle simply assumes that arbitrageurs enter the market and quickly eliminate mispricing if a riskless profit opportunity exists.