Difference between revisions of "Arbitrage"
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Arbitrage]]. The simultaneous buying and selling of the same commodity or security in two different markets at different prices, thus yielding a risk-free return. | :[[Arbitrage]]. The simultaneous buying and selling of the same commodity or security in two different markets at different prices, thus yielding a risk-free return. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Arbitrage]]. The simultaneous buying and selling of the same commodity or security in two different markets at different prices and pocketing a risk-free return. | ||
==Related concepts== | ==Related concepts== | ||
Revision as of 02:27, 2 November 2019
Arbitrage is the simultaneous buying and selling of the same commodity or security in two different markets at different prices, thus yielding a risk-free return.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Arbitrage. The simultaneous buying and selling of the same commodity or security in two different markets at different prices, thus yielding a risk-free return.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Arbitrage. The simultaneous buying and selling of the same commodity or security in two different markets at different prices and pocketing a risk-free return.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
