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LSDefine

Simple English definitions for legal terms

kind arbitrage

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A quick definition of kind arbitrage:

Kind arbitrage is when someone buys a security that can be exchanged or converted to another security within a reasonable time, while at the same time selling the second security. This is done to make a profit from the price difference between the two securities. It is also called convertible arbitrage.

A more thorough explanation:

Definition: Kind arbitrage is a type of arbitrage where a security is purchased that can be exchanged or converted to a second security within a reasonable time, with a simultaneous sale of the second security.

Example: An investor purchases a convertible bond that can be exchanged for common stock within a year. At the same time, the investor sells short the common stock of the same company. If the price of the common stock goes down, the investor can profit from the difference in price by exchanging the convertible bond for the common stock and selling it at a higher price.

This example illustrates how kind arbitrage involves taking advantage of price differences between two securities that are related to each other. In this case, the convertible bond and the common stock of the same company. By purchasing the convertible bond and selling short the common stock, the investor can profit from any price differences between the two securities.

kinbote | kindlie

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Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
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
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