Business / Real Estate / Arbitrage: Borrowing at one interest rate and investing at a higher rate.

Arbitrage Pricing Theory (APT)

Business / Finance / Arbitrage Pricing Theory (APT): An alternative model to the capital asset pricing model developed by Stephen Ross and based purely on arbitrage arguments. The APT implies that there are multiple risk factors that need to be taken in MORE

Risk Arbitrage

Business / Finance / Risk Arbitrage: 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 MORE


Business / Finance / Arbitrageur: One who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets. The Arbitrageur profits by simultaneously purchasi MORE

Currency Arbitrage

Business / Finance / Currency Arbitrage: Money. MORE

Covered Interest Arbitrage

Business / Finance / Covered Interest Arbitrage: A strategy that involves writing a call option on securities that the investor owns. See: Covered or hedge option strategies. MORE

Arbitrage Bonds

Business / Finance / Arbitrage Bonds: Municipality issued bonds issued intended to gain an interest rate advantage by refunding a higher-rate bond in ahead of their call date. Lower-rate refunding issue proceeds are invested in Treasuries MORE