RISK ARBITRAGE

Pronunciation (US):

(GB):

 I. (noun) 

Sense 1

Meaning:

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

Synonyms:

risk arbitrage; takeover arbitrage

Classified under:

Nouns denoting acts or actions

Hypernyms ("risk arbitrage" is a kind of...):

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)

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