Risk arbitrage
Risk arbitrage is the practice of purchasing stock in companies (in the context of mergers) that may become takeover targets.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Risk arbitrage. The practice of purchasing stock in companies (in the context of mergers) that may become takeover targets.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
