arbitrage

Definition from Wiktionary, a free dictionary

Contents 1 English 1.1 Etymology 1.2 Noun 1.2.1 Derived terms 1.2.2 Related terms 1.2.3 External links 1.3 Verb 2 French 2.1 Noun 2.1.1 Related terms

[edit] English

Wikipedia

[edit] Etymology

From French arbitrage < arbitrer (“‘to arbitrate’”); see arbitrate.

[edit] Noun

arbitrage (countable and uncountable; plural arbitrages)

1. The practice of quickly buying and selling foreign currencies in different markets in order to make a profit
2. 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
3. Any market activity in which a commodity is bought and then sold quickly, for a profit which substantially exceeds the transaction cost
   • a. 1973, Benjamin Graham, The Intelligent Investor^[1], 2003 HarperCollins ed., page 174:

     But in recent years, for reasons we shall develop later, the field of "arbitrages and workouts" became riskier and less profitable.

[edit] Derived terms

• arbitrageur

[edit] Related terms

• arbiter
• arbitrable
• arbitrary
• arbitrate
• arbitration
• arbitrator

[edit] External links

• arbitrage in Webster’s Revised Unabridged Dictionary, G. & C. Merriam, 1913
• arbitrage in The Century Dictionary, The Century Co., New York, 1911

[edit] Verb

to arbitrage (third-person singular simple present arbitrages, present participle arbitraging, simple past and past participle arbitraged)

1. (intransitive, finance) To employ arbitrage
   • 1961, Maurece Schiller, Fortunes in Special Situations in the Stock Market^[2], page iv:

     He has arbitraged by purchasing in one market and simultaneously selling the same or similar merchandise in another market.

2. (transitive, finance) To engage in arbitrage in, between, or among
   • 2001, Frederic S. Mishkin, Prudential Supervision: What Works and what Doesn't, page 98:

     Indeed, as banks become more adept at internal risk classifications, their incentives to arbitrage economic and regulatory capital can only increase

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[edit] French

Wikipedia ^fr

[edit] Noun

arbitrage m. (plural arbitrages)

1. arbitration (the act or process of arbitrating)
2. (economics) trade-off
3. (sports) refereeing

[edit] Related terms

• arbitre
• arbitrer