Showing posts with label price discrepancies. Show all posts
Showing posts with label price discrepancies. Show all posts

Thursday, July 23, 2009

What is arbitrage?

Arbitrage is the purchase of a security from one market in order to quickly sell in another market for a profit capitalizing on price discrepancies. It can also be the purchase of a stock that is soon to be bought out with the view of reselling to the buy out company.