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arbitrage vs risk arbitrage

risk arbitrage vs arbitrage

arbitrage and risk arbitrage both are nouns.

arbitrage is a verb but risk arbitrage is not a verb.

Word NounAdjectiveVerbAdverb
arbitrage Yes No Yes No
risk arbitrage Yes No No No
As nouns, risk arbitrage is a hyponym of arbitrage; that is, risk arbitrage is a word with a more specific, narrower meaning than arbitrage:
  • arbitrage: 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
  • risk arbitrage: arbitrage involving risk; as in the simultaneous purchase of stock in a target company and sale of stock in its potential acquirer; if the takeover fails the arbitrageur may lose a great deal of money
Other hyponyms of arbitrage include takeover arbitrage.
arbitrage (noun) risk 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 arbitrage involving risk; as in the simultaneous purchase of stock in a target company and sale of stock in its potential acquirer; if the takeover fails the arbitrageur may lose a great deal of money
arbitrage (verb) risk arbitrage (verb)
practice arbitrage, as in the stock market
Difference between arbitrage and risk arbitrage

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