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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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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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