Arbitrage

[,ɑ:bi'trɑ:ʒ]

Definition

(noun.) a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price.

(verb.) practice arbitrage, as in the stock market.

Editor: Olaf--From WordNet

Definition

(n.) Judgment by an arbiter; authoritative determination.

(n.) A traffic in bills of exchange (see Arbitration of Exchange); also, a traffic in stocks which bear differing values at the same time in different markets.

Inputed by Carmela