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Simple English definitions for legal terms

risk arbitrage

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A quick definition of risk arbitrage:

Risk arbitrage is a way of making money by buying and selling stocks of companies that are likely to merge or be taken over. It involves buying the stock of the company that is being targeted for acquisition and selling the stock of the acquiring company at the same time. This is done in the hope of making a profit from the difference in the stock prices. It is called "risk" arbitrage because there is no guarantee that the merger or acquisition will actually happen, and the stock prices may not move in the expected direction.

A more thorough explanation:

Risk arbitrage is a type of arbitrage where an investor buys and sells assets that are not necessarily equivalent, but are likely to become equivalent in the future. This is often done in the context of a corporate merger or takeover, where an investor buys stock in a company that is being targeted for acquisition and sells stock in the acquiring company.

For example, if Company A announces that it will acquire Company B, an investor might buy stock in Company B and sell stock in Company A. The hope is that the price of Company B's stock will rise as the acquisition progresses, while the price of Company A's stock will fall. If the investor times the trades correctly, they can make a profit from the difference in prices.

Another example of risk arbitrage is convertible arbitrage, where an investor buys a security that can be converted into another security within a reasonable time frame, and simultaneously sells the second security. The hope is that the price of the first security will rise, making the conversion more valuable, while the price of the second security will fall.

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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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