Difference between revisions of "Arbitrage"
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | 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. | :[[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. | ||
| + | According to [[Macroeconomics by Mankiw (7th edition)]], | ||
| + | :[[Arbitrage]]. The act of buying an item in one market and selling it at a higher price in another market in order to profit from the price differential in the two markets. | ||
==Related concepts== | ==Related concepts== | ||
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*[[Introduction to Financial Management]]. | *[[Introduction to Financial Management]]. | ||
| − | [[Category: Financial Management]][[Category: Articles]] | + | [[Category: Financial Management]][[Category: Articles]][[Category: Economics]] |
Latest revision as of 16:35, 1 July 2020
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.
According to Macroeconomics by Mankiw (7th edition),
- Arbitrage. The act of buying an item in one market and selling it at a higher price in another market in order to profit from the price differential in the two markets.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
