record date and the closing date that arbitrageurs
21) By buying up large positions after the announcement of a transaction, arbitrageurs
can overcome the collective action problems that would otherwise render appraisal ineffective.
That deals are more likely to fail in a declining market and thereby result in losses for risk arbitrageurs
probably accounts for this nonlinearity.
For example, an arbitrageur
with a simultaneous position in Treasury spot and futures markets generally cannot cross-margin.
In reality, arbitrageurs
such as investment banks and hedge funds trade bonds of different maturities to make profits.
A short arbitrageur
is someone who sells shares cum dividend and buys them back ex dividend.
Regulatory restrictions on arbitrage are directed at short sales, undertaken by an arbitrageur
when she believes the market price of a security is higher than its efficient price.
The risk arises because the arbitrageur
needs outside investors, and these outside investors might revise their beliefs about the arbitrageur
's talent at the interim date, based on the return the arbitrageur
achieved in the first period.
In a merger that takes several months to close, sometimes arbitrageurs
will wind up buying and selling the shares involved amongst themselves.
is an individual who takes advantage of a situation in which securities are mispriced relative to each other.
Boesky was the emblematic risk arbitrageur
of the 1980s, and Lincoln's examiners regarded the Boesky investment as extraordinarily risky.
One would think Revco would try to get a tender offer out there as soon as possible and finish this deal," says one arbitrageur
can redeem a check made out for one dollar with gold that has a market value of more than one dollar.
is looking for a guaranteed profit.
Time then for some unlikely heroes to step forward and at Dundalk on Friday it was the Donal Kinsella-trained Arbitrageur
who took the opportunity to round off his season on a winning note.