Expanding The Limits Of Merger Arbitrage
- Topics:
- Mergers
- Tags:
- Arbitrage,
- Finance,
- Financial Services,
- Investment,
- Merger,
- Mergers & Acquisitions,
- Social Science Electronic Publishing Inc.
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Overview: The term arbitrage denotes the simultaneous purchase and sale of identical assets in order to profit from a price difference between the two assets. The perfect case of arbitrage occurs when there is no risk involved and no capital is required. During merger and acquisition process, professional risk arbitragers purchase the shares of a target firm. When the deal becomes effective, the arbitragers sell the target’s stock to the bidder and accumulate the gains. The paper explains how to expand the limits of merger arbitrage.
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Format: PDF | Size: 233KB | Date: May 2003 | Pages: 51
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