is the activity of buying securities or currency in one financial market and selling it at a profit in another.

Astute Singaporeans quickly spotted an arbitrage opportunity.

asimultaneouspurchase andsalein two separate financial markets in order to profit from a pricebetween them

a buying of a large number of shares in acorporationinanticipationof, and with theexpectationof making a profit from, amergeror takeover

Websters New World College Dictionary, 4th Edition. Copyright © 2010 by Houghton Mifflin Harcourt. All rights reserved.

thepurchaseofcurrenciessecurities, orcommoditiesin onemarketforin others in order toprofitfrom

is the simultaneous purchase and sale of anassetin order to takeadvantageof a difference in price.

A dealer who can ease a billion dollars of highly volatile long-term bonds into his own portfolio and hedge it discreetly through

often captures the business of coveted accounts.

takes advantage of discrepancies in price or yields in different markets.

is the simultaneous purchase and sale of an asset in order to take advantage of a difference in price.

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Too often theyreflecttheobjectivesofand regulatory arbitrage.

International Finance: The markets and financial management of multinational business.

The effect of interest arbitrage is to make itirrelevantwhere a personinvestsorborrows.

International Finance: The markets and financial management of multinational business.

Weshowbandaround the interestparityline within which round-trip interest arbitrage isunprofitable.

International Finance: The markets and financial management of multinational business.

If this were not so, there would be interest arbitrage.

International Finance: The markets and financial management of multinational business.

Thefundis concerned that if some countriesof others, companiesregulatory arbitrage.

Interest arbitragealsoinvolves two, since the borrowed currency is soldspotand then boughtforward.

International Finance: The markets and financial management of multinational business.

Therefore, not unexpectedly, transaction costsdiscouragethis covered interest arbitrage.

International Finance: The markets and financial management of multinational business.

One thing is certain:internationaldifferences in thescopeandnatureofregulationwillremain, presentingopportunitiesfor regulatory arbitrage.

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