Main Entry: ¹ar·bi·trage

Pronunciation: \ˈär-bə-ˌträzh\

Function: noun

Etymology: French, from Middle French, arbitration, from Old French, from arbitrer to render judgment, from Latin arbitrari, from arbitr-, arbiter

Date: 1875

1 : the nearly simultaneous purchase and sale of securities or foreign exchange in different markets in order to profit from price discrepancies
2 : the purchase of the stock of a takeover target especially with a view to selling it profitably to the raider