| 释义 |
DictionarySeerisk arbitrageLegalSeeRisk ArbitrageMerger Arbitrage
Merger ArbitrageIn the context of hedge funds, a style of management that involves the simultaneous purchase of stock in a company being acquired and the sale of stock in its acquirer.Merger ArbitrageA strategy in which a hedge fund buys shares in two companies that are in the process of merging and sells the shares after the merger is complete. Merger arbitrage can be profitable because stock prices often decline in the process of a merger because of the possibility that the merger negotiations will fail. They then go to a higher price after the merger is complete. Because this phenomenon is so consistent, the hedge fund using merger arbitrage effectively makes a riskless profit. |