Definition of arbitrage
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
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Origin and Etymology of arbitrage
borrowed from French, literally, “decision-making, judgment,” going back to Old French, “judgment pronounced by an arbiter,” from arbitrer “to pass judgment” (borrowed from Latin arbitrārī “to consider, judge, decide,” verbal derivative of arbitr-, arbiter “onlooker, arbiter”) + -age -age
First Known Use: 1875
Other Business Terms
arbitrage
Definition of arbitrage
arbitraged
;arbitraging
intransitive verb
: to engage in arbitrage
1857
First Known Use of arbitrage
1857
Other Business Terms
ARBITRAGE Defined for English Language Learners
Definition of arbitrage for English Language Learners
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business : the practice of buying something (such as foreign money, gold, etc.) in one place and selling it almost immediately in another place where it is worth more
Law Dictionary
arbitrage
playLegal Definition of arbitrage
1 : the purchase of a security, commodity, or foreign currency in one market for the purpose of immediately selling it at a higher price in another market
2 : the purchase of the stock of a takeover target especially for the purpose of selling it to the raider for a profit
Origin and Etymology of arbitrage
French, literally, arbitration, decision-making
Learn More about arbitrage
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See words that rhyme with arbitrage Britannica.com: Encyclopedia article about arbitrage
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