ar·bi·trage /'är-bə-ˌträzh/ n [French, literally, arbitration, decision-making]
1: the purchase of a security, commodity, or foreign currency in one market for the purpose of immediately selling it at a higher price in another market
2: the purchase of the stock of a takeover target esp. for the purpose of selling it to the raider for a profit

Merriam-Webster’s Dictionary of Law. . 1996.

index adjudication, arbitration, collective bargaining, intercession

Burton's Legal Thesaurus. . 2006

A financial transaction in which securities or goods are simultaneously bought in one market and sold in another; price differences in the different markets produce a profit.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.

Taking advantage of small price differences (of securities, currencies or goods) in different markets to make a profit, by purchasing in one market (where the price is less) and selling in another market (where the price is more). For example, if a company is listed in London and Tokyo, the price of its shares in London may be less than it is in Tokyo. By buying in London and selling in Tokyo, the arbitrageur makes a profit on the transaction. The term has been extended to so-called risk arbitrageurs who take a position in securities, particularly where a company may become or is the subject of a takeover bid.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

The simultaneous purchase in one market and sale in another of a security or commodity in hope of making a profit on price differences in the different markets.

Dictionary from West's Encyclopedia of American Law. 2005.

The simultaneous purchase in one market and sale in another of a security or commodity in hope of making a profit on price differences in the different markets.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

Look at other dictionaries:

  • ARBITRAGE — Au lieu de porter leurs contestations devant les tribunaux, il arrive fréquemment que les particuliers s’adressent à d’autres personnes en vue d’arbitrer un différend. L’institution de l’arbitrage est de tous les temps. Il est permis de penser… …   Encyclopédie Universelle

  • Arbitrage — (von französisch arbitrage , lat. arbitratus = Gutdünken, freie Wahl, freies Ermessen) bezeichnet das Ausnutzen von Preisunterschieden für gleiche Waren auf verschiedenen Märkten. Infolge der ausgleichenden Wirkung der Arbitrage passen sich die… …   Deutsch Wikipedia

  • arbitrage — ARBITRAGE. subst. m. Jugement d un différent par Arbitre. Mettre quelque chose en arbitrage. Se soumettre à l arbitrage. Subir l arbitrage. S en tenir à l arbitrage …   Dictionnaire de l'Académie Française 1798

  • arbitrage — Arbitrage. s. m. Jugement d un differend par des arbitres. Mettre quelque chose en arbitrage. se sousmettre à l arbitrage. subir l arbitrage. s en tenir à l arbitrage …   Dictionnaire de l'Académie française

  • arbitrage — [är′bə träzh΄] n. [LME < Fr < arbitrer, to judge < L arbitrari: see ARBITRATE; for 2, < Fr arbitrage] 1. a simultaneous purchase and sale in two separate financial markets in order to profit from a price difference existing between… …   English World dictionary

  • Arbitrage — (fr., spr. Arbitrahsch), 1) der Rechtsspruch des von den streitenden Parteien gewählten Schiedsrichters; 2) (Handlsw.), die Berechnung, welche man anstellt, um zu entscheiden, in welcher Münzsorte man am vortheilhaftesten eine Zahlung leiste… …   Pierer's Universal-Lexikon

  • arbitrage — (n.) exercise of the function of an arbitrator, late 15c., from O.Fr. arbitrage arbitration, judgment, from arbitrer to arbitrate, judge, from L.L. arbitrari, from L. arbiter (see ARBITER (Cf. arbiter)) …   Etymology dictionary

  • arbitrage — c est sentence d arbitre, Arbitrium. Arbitrage ou compromis, Arbitrium, Compromissum …   Thresor de la langue françoyse

  • Arbitrage — Ar bi*trage, n. [F., fr. arbiter to give judgment, L. arbitrari.] 1. Judgment by an arbiter; authoritative determination. [Archaic] [1913 Webster] 2. (Com.) A traffic in bills of exchange (see {Arbitration of Exchange}). [1913 Webster] 3.… …   The Collaborative International Dictionary of English

  • Arbitrage — (franz., spr. āsch , v. lat. arbitrium. Entscheidung), im allgemeinen die Erwägung und Entscheidung über die günstigsten unter den an verschiedenen Plätzen sich bietenden Einkaufs und Verkaufsgelegenheiten, findet insbes. Anwendung auf… …   Meyers Großes Konversations-Lexikon

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