Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
arbitrage
n. the simultaneous buying and selling of identical securities in different markets, with the hope of profiting from the price difference in those markets. -also termed space arbitrage. - arbitrager (ahr-ba-trazh-ar), arbitrageur (ahr-ba-trahzhar), n.
arbitrage bond
A municipal bond, the proceeds of which are invested in bonds paying a higher yield than that paid by the municipality on its own bonds. ( Under the Internal Revenue Code, the tax-free aspect of municipal-bond income may be lost if the bonds are classified as arbitrage bonds. See ARBITRAGE.
convertible arbitrage
See kind arbitrage under ARBITRAGE.
kind arbitrage
See ARBITRAGE.
kind arbitrage.
purchase of a security that, having no restriction other than the payment of money, is exchangeable or convertible within a reasonable time to a second security, with a simultaneous offsetting sale of the second security. - also termed convertible arbitrage.
risk arbitrage
arbitrage of assets that are probably, but not necessarily, equivalent; esp., arbitrage of corporate stock in a potential merger or takeover, whereby the target company's stock is bought and the acquiring company's stock is sold simultaneously.
space arbitrage
See ARBITRAGE.
time arbitrage
purchase of a commodity against a present sale of the identical commodity for a future delivery; esp., the simultaneous buying and selling of securities for immediate delivery and future delivery, with the hope of profiting from the difference in prices.