MergerZoom.com is your source for the latest merger and acquisition news, merger arbitrage opportunities, hostile and friendly buyouts, leveraged buyouts (LBO) and historical merger data.
MergerZoom.com provides real time information about risk arbitrage profit opportunities by showing spreads data for all announced public mergers.
Merger arbitrage is a market neutral form of trading that seeks to exploit inefficiencies in the stock price of a company who has agreed to sell to another company for cash, stock, or a combination of both.
By assuming the risk that a merger will not close, will close later than expected, or at a lower price than expected, an investor can generate consistent high Sharpe-ratio returns.
Since this type of arbitrage is not completely risk free, merger arbitrage is also known as risk arbitrage.
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The Simple Way to Merger Arbitrage
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Merger arbitraging was never easy due to a lack of easy access to merger stats or reports.
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between the arbitrageurs and the target merger companies.
What is Merger Arbitrage?
Merger arbitrage is a market neutral form of trading that seeks to exploit inefficiencies in the stock price of a company who has agreed to sell to another company for cash, stock, or a combination of both.
By assuming the risk that a merger will not close, will close later than expected, or at a lower price than expected, an investor can generate consistent high Sharpe-ratio returns that is uncorrelated to the market.