;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.
Today’s Fed meeting should go a long way towards determining if they intend to keep interest rates at near-zero levels by buying vast quantities of bonds, or if they will begin to lighten up a bit on the gas pedal, a process that has become known as “tapering.” Whatever their decision, arbitrageurs in banks, brokerage firms and hedge funds will try to capitalize on the information as quickly as possible.
Get that homework in, gang!
arbitrage -
a angry emotional reaction in response to weird, strange, random, and unreasonable behavior.
arbit rage.
Before the election in 2008
There was an electronic “run on the bank”
Some dismiss it as arbitrage
But I’m saying now it’s sabotage
You're Number One!
Careful which finger you hold up for “one”!
On a recent transatlantic flight, a plane
passes through a severe storm. The
turbulence is awful, and things go from bad to worse when one wing is
struck by lightning.
One woman in particular loses it.
Screaming, she stands up in the front of the plane. “I’m
too young to die,” she wails. Then she yells,
Well, if I’m going to die, I want my last minutes
on earth to be memorable! Is there ANYONE
on this plane who can make me feel like a WOMAN?”
For a moment there is silence. Everyone has forgotten
their own peril. They all stared, riveted, at the
desperate woman in the front of the plane.
Then a man stands up in the rear of the plane.
He is gorgeous, tall, built, with
reddish-blond hair and hazel eyes, he starts to walk slowly up the aisle,
unbuttoning his shirt
......one button at a time.
......No one moves.
.......He removes his shirt.
.....Muscles ripple across his chest
......he whispers:
........here, iron this.
That’s an oldie, but a goodie!
Nicely done!
What is your feeling on the Bitcoin?
My thought is now that its on the radar, the opportunity and price explosion, is driven by institutional manipulation.,,
Thoughts?
Nice work.
Sucking up to the teachers style :-)
Cute, although it has nothing to do with arbitrage. However, I am pleased that you received the PING today.
A+++
Wow! Really good!!!
The way I heard it, it was Rush and Hillary trapped in an elevator.
I’ve seen the Bitcoin mania and originally thought it was akin to the Tulip Bulb insanity of a few centuries back. Now, I’m not so sure. I am staying as far away from it as I can.
I can’t stand it I know you planned it
I’m gonna set it straight, this watergate
That was the first thing that popped into my head when I saw this word.
Its' down 50% in the last two days.
Of course now I wish I had bought some in March.
Wouldn't touch it now.
The price explosion happened when Silk Road was exposed,
And that seems seems institutional.
My thing about the BC, was eventually the gov’t would mine the transactions for max value, then kill it.
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