Meaning ARBITRAGE: The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist, but, arbitrage opportunities are often precluded because of transactions costs
More terms such as Arbitrage in Dictionary A.
- Definition Announcement Date:
- Examples Date on which particular news concerning a given company is announced to the public. Used in event studies, which researchers use to evaluate the economic impact of events of interest arbitrage definition.
- Definition Account Executive:
- Examples The brokerage firm employee who handles stock orders for clients. See: Broker arbitrage explain.
- Definition APS:
- Examples Auction Preferred Stock. A type of Dutch Auction Preferred Stock (Goldman Sachs product arbitrage what is.
- Definition Average Cost Of Capital:
- Examples required payout to bondholders and stockholders expressed as a percentage of capital contributed to the firm. Average cost of capital is computed by dividing the total required cost of capital by the arbitrage meaning.
- Definition Agency Pass-Throughs:
- Examples through securities whose principal and interest payments are guaranteed by government agencies, such as the Government National Mortgage Association (Ginnie Mae), Federal Home Loan Mortgage arbitrage abbreviation.
