Arbitrage Definition

ärbĭ-träzh
arbitraged, arbitrages, arbitraging
noun
The simultaneous purchase and sale of equivalent assets or of the same asset in multiple markets in order to exploit a temporary discrepancy in prices.
American Heritage
A simultaneous purchase and sale in two separate financial markets in order to profit from a price difference existing between them.
Webster's New World
A buying of a large number of shares in a corporation in anticipation of, and with the expectation of making a profit from, a merger or takeover.
Webster's New World
The practice of quickly buying and selling foreign currencies in different markets in order to make a profit.
Wiktionary
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.
Wiktionary
verb
To be involved in arbitrage.
American Heritage
To engage in arbitrage.
Webster's New World
(intransitive, finance) To employ arbitrage.
Wiktionary
(finance) To engage in arbitrage in, between, or among.
Wiktionary

Other Word Forms of Arbitrage

Noun

Singular:
arbitrage
Plural:
arbitrages

Origin of Arbitrage

  • Middle English arbitration from Old French from arbitrer to judge from Latin arbitrārī to give judgment arbitrate

    From American Heritage Dictionary of the English Language, 5th Edition

  • Borrowing from French arbitrage, from arbitrer (“to arbitrate”); see arbitrate.

    From Wiktionary

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