Merger Arbitrage

Definition:

In the context of hedge funds, a style of management that involves the simultaneous purchase of stock in a company being acquired and the sale of stock in its acquirer.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Up volume

When a stock closes increases in value on a particular day, the volume in that stock is considered up volume. Related: Down volume.

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