Riskless Arbitrage

Riskless Arbitrage Investment Strategy

Purchasing stocks of companies that are likely takeover targets, while assuming short positions in the would-be acquiring companies. Risk arb players can employ an event-driven investment strategy or merger arbitrage investment strategy, seeking situations such as hostile takeovers, mergers and leveraged buyouts. Such funds typically experience moderate amounts of volatility.

Definition Source: Hedgeco

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Tags: Riskless arbitrage, risk arbitrage, risk arbitrage strategy, risk free arbitrage, arbitrage pricing risk theory, merger arbitrage, merger and acquisition arbitrage, merger arbitrage strategy

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