From Longman Dictionary of Contemporary Englisharbitragear‧bi‧trage /ˈɑːbətrɑːʒ $ ˈɑːr-/ noun [uncountable] technical BFSthe process of buying something such as raw materials or currency in one place and selling them immediately in another place in order to make a profit from the difference in prices —arbitrageur /ˌɑːbətrɑːˈʒɜː $ ˌɑːrbətrɑːˈʒɜːr/ (also arbitrager British English /ˈɑːbətrɑːʒə $ ˈɑːrbətrɑːʒər/) noun [countable]
Examples from the Corpus
arbitrage• This delayed cash flow will alter the net present value of an arbitrage transaction which involves buying shares.• He rejected stale prices as a cause, but found some support for arbitrage risk as an explanation of mispricing.• When they allowed for four different levels of transactions costs, they concluded that many potential opportunities for profitable arbitrage remained.• Our investors always took risk; high-wire act would have been more accurate than arbitrage.• In Chapter 6 the variant known as the arbitrage pricing model will be presented.• The justification for this assumption is that the arbitrage transaction is riskless, and so repayment is guaranteed.• This arbitrage opportunity raises the attractiveness of sterling and reduces the attractiveness of dollars.• Markets typically include a provision for resolving disagreements by returning the product or through arbitrage in other cases.From Longman Business Dictionaryarbitragear‧bi‧trage /ˈɑːbətrɑːʒˈɑːr-/ noun [uncountable]FINANCE1buying something such as a raw material or currency in one place and selling it immediately in another, in order to make a profit from price differences between the two placesAnalysts attributed the activity to arbitrage buying: traders bought cocoa in New York to sell at a profit in London.2buying and selling shares of two companies involved, or that may be involved, in a takeover, in order to make a profit from differences in the share values of the two companiesThe company incurred losses in risk arbitrage - or takeover-stock speculation - arising from last year’s slump in U.S. merger activity. → exchange arbitrageOrigin arbitrage (1800-1900) French arbitrer, from Latin arbitrari; → ARBITRATE 