arbitrager - Hutchinson encyclopedia article about arbitrager Printer Friendly
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arbitrageur
(redirected from arbitrager)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.12 sec.

arbitrageur

In finance, a person who buys securities (such as currency or commodities) in one country or market for immediate resale in another market, to take advantage of different prices.

Arbitrage became widespread during the 1970s and 1980s with the increasing deregulation of financial markets. The effect of arbitrage is to lessen or eliminate the price differentials among the markets. The term took on additional meaning with the increase in corporate buyouts in the deregulated atmosphere of the late 1980s. Arbitrageurs speculated on target companies, buying stock and reselling it at the higher buyout price.



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Working together, a put-call system would allow the Saban group to sell its shares to Televisa at a preferred price without interference from arbitragers or other traders.
The Wall Street arbitragers who lost a bundle when the deal cratered think the FTC's action was triggered by complaints from Office Max, the third major superstore chain, which stood to get some assets on the cheap if the government forced the merged entity to spin them off in the name of protecting competition.
Simply, as the currencies were devalued in Asia, China, Japan and Russia, and the arbitragers lost money, it also made the cost of the overseas goods cheaper against the American dollar.
 
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