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Words related to arbitrage

a kind of hedged investment meant to capture slight differences in price

practice arbitrage, as in the stock market

References in periodicals archive ?
Arbitrage exists when there is an anticipation of market movement in or the repositioning and asymmetry in information about an asset such as property, legal entitlements, stocks, bonds or transferable organization or reputation assets broader market.
Most arbitrage is more prosaic with the trading of securities stocks and bonds, commodities, property, rights and money compared with the ups and downs in some known and foreseeable futures in a mature market.
Inner-city areas present the arbitrage seeker with a new form of securities that can be assessed on the movement of a higher value.
Then trading assets or derivatives of assets like loan pools and cash flows or real estate equity can form the basis for an arbitrage opportunity.
The arbitrage game has one essential rule: "It is not grave sin that the arbitrageur must shun, but grave risks" (Weisweiller, Rudi 1986).
Over the last few years, the market's started to lean much more to the arbitrage strategies.
By examining the spot-forward relationship in some specific currency markets and domestic-foreign relationship in corresponding credit markets, the main objectives of this research work are a) to find out the frequency of pure arbitrage conditions; b) to indentify the underlying factors that may lead to the occurrence of pure arbitrage conditions; c) to test the accuracy of the model that we build for predicting the pure arbitrage conditions; and d) to summarize the rules regarding how the changes in exchange rates and interest rates can affect the timings on which the pure arbitrage opportunities occur and end.
Pure arbitrage aims at achieving profits as much "risk-free" and "frictionless" as possible; therefore its application effectiveness depends on some important market conditions, such as the similarity in economic risk environments across involved countries, and the low level of restrictions in currencyand credit markets.
Most of the existing empirical evidence is consistent with the CIRP theorem after adjusting for transaction cost, showing no identifiable profiting opportunities in the covered interest arbitrage (Frenkel and Levich, 1975, 1977; Callier, 1981; Levi, 1992).
Rhee and Chang (1992) and Blenman and Thatcher (1997) have both, by determining arbitrage conditions in bid-ask forms, empirically tested the profitability of arbitrage opportunities.
To minimize the cost of exchanging currencies across markets, traders would choose one-way arbitrage if such is preferable to a direct transaction, and choose quasi arbitrage if such is preferable to pure arbitrage (Deardorff, 1979).
By permitting the check-the-box election and its use in international tax arbitrage in eligible jurisdictions, this uncertainty is removed.
The underlying premise of harnessing the costs of international tax arbitrage is that arbitrage transactions should be explicitly permitted in some jurisdictions.
One of the primary benefits of the proposal is that it can be adopted unilaterally; under the proposal, the United States would specifically incorporate the check-the-box arbitrage into its tax policy (costs already borne by the United States) to encourage investment in eligible jurisdictions.
146) At a minimum, such discussions would lead to the creation of a common "language" regarding entity classification issues and their use in international tax arbitrage transactions, (147) a discussion that is not currently being undertaken, especially with respect to developing countries.