What is the difference between pure arbitrage and risk arbitrage? If an investor observes the price of a stock trading in one exchange to be different from its price in another exchange, what form of arbitrage is applicable and how could the investor participate in that arbitrage?
Answer to relevant QuestionsHow do agency transactions differ from principal transactions for market makers?An investor notices that an ounce of gold is priced at $ 1,318 in London and $ 1,325 in New York. What action could the investor take to try to profit from the price discrepancy? Which of the six trading activities would ...An investment bank pays $ 23.50 per share for 3,000,000 shares of the KDO Company. It then sells these shares to the public for $ 25. How much money does KDO receive? What is the investment banker’s profit? What is the ...What are money market mutual funds? In what assets do these funds typically invest? What factors caused the strong growth in this type of fund over various periods from 1992 through 2009?How might an individual’s preference for a mutual fund’s objective change over time?
Post your question