Meaning of “risk arbitrage” in the English Dictionary

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"risk arbitrage" in Business English

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risk arbitragenoun [ U ]

uk us FINANCE, STOCK MARKET

the practice of buying and selling shares in two companies that are involved in a takeover in order to make a profit from the difference in their share prices:

The strong rebound in US merger activity brought a renaissance in takeover-stock investing, known as risk arbitrage.

(Definition of “risk arbitrage” from the Cambridge Business English Dictionary © Cambridge University Press)