- Types:
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arbitrage
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
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foreign direct investment
investing in United States businesses by foreign citizens (often involves stock ownership of the business)
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leverage, leveraging
investing with borrowed money as a way to amplify potential gains (at the risk of greater losses)
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risk arbitrage, takeover arbitrage
arbitrage involving risk; as in the simultaneous purchase of stock in a target company and sale of stock in its potential acquirer; if the takeover fails the arbitrageur may lose a great deal of money