Investor Glossary-arbitrageurInvestor Glossary-arbitrageurInvestor Glossary-arbitrageurInvestor Glossary-arbitrageurInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Arbitrageur

The HTML to link to this page
 

An arbitrageur is an individual or an organization that engages in the act of arbitrage, taking advantage of market imbalances. For example, an arbitrageur would locate a commodity (i.e. grain) or a security (i.e. stock) in a lower-priced market and then immediately resell in another market at a higher price, in the hope of profiting from the price differential. An arbitrageur might participate in risk-free arbitrage (true arbitrage) or an arbitrageur might be involved in risk arbitrage (statistical arbitrage). An arbitrageur would be engaged in risk-free arbitrage when buying stock at a low price and than selling high. The types of risk or statistical arbitrage that an arbitrageur might be involved in include merger, liquidation and/or pairs trading. Often, an arbitrageur is a seasoned investor who has a deep understanding of the markets and can exploit hard-to-find opportunities. From an economic standpoint, an arbitrageur can help reduce market price disparities and increase a market's liquidity.



Rate this arbitrageur definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use