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Simple English definitions for legal terms

convertible arbitrage

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A quick definition of convertible arbitrage:

Convertible arbitrage is a type of investment strategy where an investor buys a security that can be exchanged or converted into another security within a reasonable time, while simultaneously selling the second security. The goal is to profit from the price difference between the two securities. This is also known as kind arbitrage.

A more thorough explanation:

Convertible arbitrage is a type of arbitrage where an investor buys a security that can be exchanged or converted to another security within a reasonable time, while simultaneously selling the second security. The goal is to profit from the price difference between the two securities.

Let's say an investor buys a convertible bond from Company A that can be converted to Company A's stock within a year. At the same time, the investor sells short Company A's stock. If the price of Company A's stock goes up, the investor can convert the bond to stock and sell it at a higher price, while buying back the shorted stock at a lower price to cover the position. The difference between the two prices is the profit.

This example illustrates how convertible arbitrage works. By taking advantage of the price difference between the convertible bond and the underlying stock, the investor can make a profit without taking on too much risk.

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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