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 ?
In the latter case, the arbitrage violations persist due to "limits to arbitrage" such as the inability of arbitrageurs to raise capital quickly and/or their unwillingness to take large positions in these arbitrage trades because of mark-to-market risk.
[t.sub.c], giving appraisal arbitrageurs, on average, a seventy-four-day
"Equilibrium and Welfare in Markets with Financial Constrained Arbitrageurs." Journal of Financial Economics 66, nos.
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 to use, even putting mandatory disclosure aside.
Therefore, profit is made by the arbitrageur in all three possible outcomes.
A combination of rising stock prices and falling interest rates has forced many companies that have proposed leveraged buyouts to improve their offers to shareholders in recent months, and many arbitrageurs have accumulated Revco stock in the expectation that the drug chain would follow suit.
See Phillips and Smith (1980) for estimates of transactions costs incurred by arbitrageurs, option market makers and individual traders.
Terms which might warrant particular consideration are 'speculator', 'arbitrageur', 'co-ordinator' and the like.
Even though the arbitrageurs are trading gold, their transactions have little or no direct effect on the price of gold, the quantity of money, or the bond interest rate.
Real estate prices are rising to the point where the person buying property is less likely to be an artist than an arbitrageur. Locals worry that Big Sur will start to live not just with tourists but for them.