;Posted on 12/18/2013 5:29:09 AM PST by TruthShallSetYouFree
Word For The Day, Wednesday, December 18, 2013-- arbitrage
;In order that we might all raise the level of discourse and expand our language abilities, here is the daily post of "Word for the Day".
arbitrage [ahr-bi-trahzh]
1. Noun: Finance. the simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.
2. Verb, used without object: To engage in arbitrage activities
Origin: 1470–80; < Middle French, equivalent to arbitr ( er ) to arbitrate, regulate (< Latin arbitrārī; see arbitrate) + -age -age
Related forms
arbitrageur, noun
From http://www.wallstreetoasis.com
Arbitrage is the technique of investing in two assets (going long one and short the other) and assuming that the prices will converge over time. This is made possible as a result of market inefficiencies, although as technology advances more and more these inefficiencies are likely to be smaller and to be eliminated faster. True arbitrage is meant to be risk-free profit but in reality it very, very rarely is. Due to the fact that any profit from arbitrage is likely to be small, traders and investors will put in vast amounts of money to magnify returns. The most famous example of arbitrage is that of Long Term Capital Management, the quant-based hedge fund which started off selling new US government bonds and buying older ones, and taking the profits as the prices converged. Hedge funds which operate an event driven strategy will often work on the basis of merger arbitrage, i.e., that the stock prices of companies will converge if they complete a merger deal.
Rules: Everyone must leave a post using the Word for the Day in a sentence.
The sentence must, in some way, relate to the news of the day.
It’s the heavy breathing when you ask,
At least that’s what the girls tell me.....
Lol
Wonderful news!
You guys sound like you live in my house sometimes. It’s a little unsettling.
LOL, a TARDIS would’ve helped at this stage ...
Goerge likes spicy chicken.
There is also the old joke about the seductive woman who meets a guy in a bar and tells him she will do anything he wants for $300 as long as he can express it in only three words.
“Paint my house.”
Arbitrage reminds me of how people treated Wall Street like a casino. Basically they played around with something they didn’t understand.
These pretzels are making me thirsty.
Still not ginger...
Lol...
So, I slam the glass down...
MaryAnn was better,
That is wonderful news!
Oh - so true. lol
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