Chasing fruitless arbitrage
Wealth Insight|August 2023
Decoding whether reverse merger offers any predictable arbitrage opportunities
Udhayaprakash
Chasing fruitless arbitrage

In the world of investments, arbitrage opportunities are quite popular among investors. In simple terms, they are opportunities that arise when a stock can be acquired at different prices. For instance, if a stock trades at different prices on two different exchanges, investors can gain from the arbitrage.

There is a widespread belief that arbitrage opportunities also arise during reverse mergers (when the parent company merges with its subsidiary). This is because investors can acquire the parent company’s shares at a premium or a discount through merger allotments.

Esta historia es de la edición August 2023 de Wealth Insight.

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Esta historia es de la edición August 2023 de Wealth Insight.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.