See Also: Risk arbitrage(money)
Risk arbitrage(finance)
Risk controlled arbitrage(finance)
Risk controlled arbitrage(money)
arbitrage(dictionary)
arbitrage(dictionary)
Arbitrage(money)
Tax arbitrage(money)
NAV Arbitrage(money)
Tax arbitrage(finance)

Risk arbitrage (finance)


Traditionally, the simultaneous purchase of stock in a company being acquired and the sale of stock of the acquirer. Modern risk arbitrage focuses on capturing the spreads between the market value of an announced takeover target and the eventual price at which the acquirer will buy the target's shares.