Merger Arbitrage
Definition
What is Merger Arbitrage?
A strategy that trades securities involved in an announced merger or acquisitionThe purchase of control or ownership of a company or business..
Example in practice
How This Looks in Practice
The investorA person or organisation that commits capital with the expectation of a financial return. buys the target below the offer priceThe price at which a fund or market participant sells units or securities to an investor. while accepting deal-failure risk.
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