arbitrageur


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Related to arbitrageur: hedger

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 ?
option" (123) that appraisal arbitrageurs have when deciding to buy
Equilibrium and Welfare in Markets with Financial Constrained Arbitrageurs.
Supplies of bonds available to arbitrageurs are determined by subtracting the demand of preferred-habitat investors from the government's net issuance.
To estimate the normal relative order imbalances from arbitrageurs, we apply the same procedure over the estimation period of days -50 to -6.
The first problem is that we have treated arbitrageurs as a kind of market maker whose role is to police the efficiency of prices and whose efforts will be compromised to the extent that regulatory and transaction costs make short-selling costly.
1] This assumption prevents the arbitrageur from diluting initial investors' equity stakes later on.
For example, if arbitrageurs are subject to capital constraints and they cannot raise the capital necessary to form the riskless hedge, they will be unable to undertake trades that would move the market toward an efficient state (Shleifer and Vishny 1997).
The arbitrageur uses a computer to track the price difference between the futures and the stocks.
In the subsequent analysis, we consider the uses of single stock futures by hedgers and arbitrageurs.
The arbitrage proof of Proposition I introduced a new standard in finance, namely that any result the finance profession takes seriously must have the critical property that it cannot be undermined by clever arbitrageurs.
Billionaire arbitrageur and corporate raider Carl Icahn invested $50 million to launch his own indie label Stratosphere Entertainment two years ago.
When Pennzoil adamantly refused its offer, Guy Wyser-Pratte, a well-known arbitrageur and a Pennzoil shareholder, launched a vigorous proxy battle against Pennzoil's board.