Ask the Institute

Ask the Institute Archive

DATE: January 14, 2013

QUESTION:

Can you explain the concept of Risk Arbitrage?

ANSWER:
Risk Arbitrage refers to potential takeover situations where the arbitrageur buys the stock of the company about to be taken over and sells the stock of the company that is affecting the takeover. To learn more about Risk Arbitrage, view this week's segment of "Ask the Institute."

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