Pure Arbitrage Trading Involves

question 90

Multiple Choice

Pure arbitrage trading involves

• A)buying blocks of securities in anticipation of some information release.
• B)purchase of stock in a company being acquired and the sale of stock in the acquiring company.
• C)exploitation of a difference between a company's current value and its estimated liquidation value.
• D)purchasing an asset in one market at one price and selling it immediately in another market at a higher price.
• E)simultaneous purchase and sale of similar shares in a single market.

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Definitions:

Forecasting Techniques

Various quantitative and qualitative methods used to predict future events or trends, such as demand for products or services.

Underlying Stability

The inherent steadiness or lack of variation in a system or process over time.

Sales Force Composite

A forecasting technique based on salespersons’ estimates of expected sales.

Salespersons' Estimates

Projections of future sales based on the assessments and experiences of a company's salesforce, often used in planning and budgeting.