Stock arbitrage deals
Among several criteria, Arbitrage Associates focuses on spreads and the expected time frame in which a transaction will be completed, rather than market direction or inflation rates, for example. The fund shorts the stock of the acquirer and buys the stock of the company to be acquired. In economics and finance, arbitrage (/ ˈ ɑːr b ɪ t r ɑː ʒ /, UK also /-t r ɪ dʒ /) is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices at which the unit is traded.