risk arbitrage

(redirected from equity arbitrage)
Also found in: Thesaurus, Legal, Financial.

risk arbitrage

n.
The simultaneous purchase and sale of assets that are potentially but not necessarily equivalent in order to exploit a discrepancy in price.

risk arbitrageur n.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.risk arbitrage - arbitrage involving risk; as in the simultaneous purchase of stock in a target company and sale of stock in its potential acquirer; if the takeover fails the arbitrageur may lose a great deal of money
arbitrage - a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
References in periodicals archive ?
In the one year ended August 8, the best performing fund in the category was Kotak Equity Arbitrage Fund, with returns of 10.
Today, the management board of HSH Nordbank considered an interim report prepared by the law firm Clifford Chance in the context of its investigation on cum-ex-transactions a special kind of equity arbitrage in the years 2006 to 2011.
Prior to Alopex, he was a portfolio manager in the equity arbitrage group of Soros Fund Management.
Ken McLeish, Head of Equity Arbitrage & Algorithmic Trading Technology, Barclays Capital, will moderate the panel.
See Edgar, supra note 4, at 1142-49 (advocating a unified source and classification regime to address hybrid entity and hybrid equity arbitrage transactions); Kane, supra note 4, at 165-69 (advocating advance agreements among countries establishing procedures to address international tax arbitrage).
Prior to Chapdelaine, Radinsky was Head of High Yield and Equity Arbitrage Research at Summit Securities Group, where he developed proprietary trading ideas and provided sector insight.