Definitions
from The American Heritage® Dictionary of the English Language, 5th Edition.
- noun The simultaneous purchase and sale of equivalent assets or of the same asset in multiple markets in order to exploit a temporary discrepancy in prices.
- intransitive verb To be involved in arbitrage.
from The Century Dictionary.
- noun Arbitration. R. Cobden.
- noun The calculation of the relative value at the same time, at two or more places, of stocks, bonds, or funds of any sort, including exchange, with a view to taking advantage of favorable circumstances or differences in payments or other transactions; arbitration of exchange.
- noun The business of bankers which is founded on calculations of the temporary differences in the price of securities, and is carried on through a simultaneous purchase in the cheaper and sale in the dearer market.
from the GNU version of the Collaborative International Dictionary of English.
- noun Archaic Judgment by an arbiter; authoritative determination.
- noun (Com.) A traffic in bills of exchange (see Arbitration of Exchange).
- noun (Finance) the simultaneous or near simultaneous purchase and sale of the same or closely linked securities or commodities in different markets to make a profit on the (often small) differences in price.
from Wiktionary, Creative Commons Attribution/Share-Alike License.
- noun The practice of quickly buying and selling foreign currencies in different markets in order to make a profit
- noun The purchase of the stock of a future takeover target, with the expectation that the stock will be sold to the person executing the takeover at a higher price
- noun Any market activity in which a commodity is bought and then sold quickly, for a profit which substantially exceeds the transaction cost
- verb intransitive, finance To employ arbitrage
- verb transitive, finance To engage in arbitrage in, between, or among
from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.
- noun a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
- verb practice arbitrage, as in the stock market
Etymologies
from The American Heritage® Dictionary of the English Language, 4th Edition
from Wiktionary, Creative Commons Attribution/Share-Alike License
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Examples
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Arbitrage tools: The term arbitrage is defined as a riskless transaction for the purposes of our due diligence.
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At the same time it asserts that there will not actually be any opportunity to engage in arbitrage because markets are efficient.
The Volokh Conspiracy » Greenspan’s ‘The Crisis’ and Modigliani and Miller 2010
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So why do you think pay-per-click arbitrage is going to do it for you?
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So why do you think pay-per-click arbitrage is going to do it for you?
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Global labor arbitrage is hard at work narrowing the international wage gap among educated workers.
Wages Move Toward Equilibrium, Arnold Kling | EconLog | Library of Economics and Liberty 2009
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In a forthcoming article in the Yale Journal on Regulation, Levitin argues that regulatory arbitrage is inevitable in current financial regulatory system that features multiple regulators for essentially equivalent institutions: financial institutions will seek out the most permissive regulator, and regulators have incentives to engage in laxer regulation to attract regulatees.
Archive 2009-06-01 Rebecca Tushnet 2009
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SAFE said that not all the hot money in its estimates was for short-term arbitrage or represented illegal inflows, meaning money meant to evade controls or limits.
China Reports $75.5 Billion in 'Hot Money' Inflows Aaron Back 2011
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Pat: I mean smaller markets which are charged different prices and between which arbitrage is banned. i.e. there is a USA price, a Canada price, a Russia price, and a Zimbabwe price (decreasing in that order).
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Even more amazing was that out of those 261 investments, 59 of them were identified as arbitrage deals.
Warren Buffett and the Art of Stock Arbitrage Mary Buffett 2010
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Even more amazing was that out of those 261 investments, 59 of them were identified as arbitrage deals.
Warren Buffett and the Art of Stock Arbitrage Mary Buffett 2010
kewpid commented on the word arbitrage
Money gained by rent-seekers and other unproductive people
September 18, 2007
seanahan commented on the word arbitrage
Used in finance to describe the purchasing and immediate selling of goods or stocks to take advantage of momentary price fluctuations.
September 19, 2007