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LSDefine

Simple English definitions for legal terms

kind arbitrage

Read a random definition: fiduciary duties of trustees

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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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
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@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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