/ English Dictionary

ARBITRAGE

Pronunciation (US):

(GB):

 I. (noun) 

Sense 1

Meaning:

A kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price

Classified under:

Nouns denoting acts or actions

Hypernyms ("arbitrage" is a kind of...):

investing; investment (the act of investing; laying out money or capital in an enterprise with the expectation of profit)

Hyponyms (each of the following is a kind of "arbitrage"):

risk arbitrage; takeover arbitrage (arbitrage involving risk; as in the simultaneous purchase of stock in a target company and sale of stock in its potential acquirer; if the takeover fails the arbitrageur may lose a great deal of money)

Derivation:

arbitrage (practice arbitrage, as in the stock market)

 II. (verb) 

Sense 1

Meaning:

Practice arbitrage, as in the stock market

Classified under:

Verbs of buying, selling, owning

Hypernyms (to "arbitrage" is one way to...):

merchandise; trade (engage in the trade of)

Domain category:

commerce; commercialism; mercantilism (transactions (sales and purchases) having the objective of supplying commodities (goods and services))

Sentence frame:

Somebody ----s

Derivation:

arbitrage (a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price)

arbitrager (someone who engages in arbitrage (who purchases securities in one market for immediate resale in another in the hope of profiting from the price differential))

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