in one of the money magazines it had stated that for the upcoming year units of equity arbitrage funds may sell like hot cakes. there was very little information about what this equity arbitrage fund is and how it works. i just wanted a brief idea on what equity arbitrage fund.Asked 142 day(s) back
The word arbitrage means that the phenomenon of exploiting the conditions of two markets in such a way that one can make profit out of buying a product in one market and selling it in the other. When it comes to equity arbitrage funds the meaning changes from two different markets to two different situations. The mutual fund provider mainly concentrates on purchasing stock from a company at a low price and then sell it in such a time that good profit can be made from the selling. The difference between the two situations earns a profit to the investor.