arbitrage

  1. Noun.  The practice of quickly buying and selling foreign currencies in different markets in order to make a profit.
  2. 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.
  3. Noun.  Any market activity in which a commodity is bought and then sold quickly, for a profit which substantially exceeds the transaction cost.
  4. Verb.  (intransitive, finance) To employ arbitrage.
  5. Verb.  (transitive, finance) To engage in arbitrage in, between, or among.

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This entry was last updated on RefTopia from its source on 3/20/2012.