Definition of risk arbitrage in English English dictionary
A form of arbitrage that has some risk associated with it Commonly refers to potential takeover situations where the arbitrageur buys the stock of the company about to be taken over and sells the stock of the company that is effecting the takeover See also Dividend Arbitrage
Traditionally, the simultaneous purchase of stock in a company being acquired and sale of stock of the acquirer Modern "risk arbitrage" focuses on capturing the spreads between the market value of an announced takeover target and the eventual price at which the acquirer will buy the target's shares
Traditionally, the simultaneous purchase of stock in a company being acquired and the sale of stock of the acquirer Modern risk arbitrage focuses on capturing the spreads between the market value of an announced takeover target and the eventual price at which the acquirer will buy the target's shares
The purchase of shares in a takeover target with expectation that the price will go higher as the raider attempts to gather more shares
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
The simultaneous purchase and sale of assets that are potentially but not necessarily equivalent.risk arbitrageur n