ar·bi·trage
ˈär-bə-ˌträzh 
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
Examples of arbitrage in a Sentence
Recent Examples on the Web
W. David Marx, The Atlantic, 1 May 2024
Such a convergence would stop investors buying the lower-cost APE shares and shorting the higher-cost AMC common shares as part of an arbitrage trade.
—Etan Vlessing, The Hollywood Reporter, 28 Feb. 2023
See all Example Sentences for arbitrage 
Noun
The devaluing of cultural arbitrage—and the decrease in instances of hybridization—is certainly an additional factor to be considered.
—W. David Marx, The Atlantic, 1 May 2024
Such a convergence would stop investors buying the lower-cost APE shares and shorting the higher-cost AMC common shares as part of an arbitrage trade.
—Etan Vlessing, The Hollywood Reporter, 28 Feb. 2023
See all Example Sentences for arbitrage
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'arbitrage.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
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Cite this Entry
“Arbitrage.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/arbitrage. Accessed 29 May. 2024.
Copy CitationLegal Definition
arbitrage
noun
ar·bi·trage
ˈär-bə-ˌträzh
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
Etymology
Noun
French, literally, arbitration, decision-making
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