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From The Collaborative International Dictionary of English v.0.44 [gcide]:
Arbitrage \Ar"bi*trage\, noun [F., fr. arbiter to give judgment, L. arbitrari.]
1. Judgment by an arbiter; authoritative determination. [Archaic]
2. (Com.) A traffic in bills of exchange (see {Arbitration of Exchange}).
3. (Finance) the simultaneous or near simultaneous purchase and sale of the same or closely linked securities or commodities in different markets to make a profit on the (often small) differences in price. [PJC]
From WordNet (r) 2.0 [wn]:
arbitrage
noun: a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
verb: practice arbitrage, as in the stock market
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Definitions retrieved from local copies of the freely distributed DICT client/server software and databases. Click here for database copyright information. - KM |