Arbitrage: Exploiting market inefficiencies by buying and reselling a commodity for a profit. As it relates to the search market, many thin content sites laced with an Overture feed or AdSense ads buy traffic from the major search engines and hope to send some percent of that traffic clicking out on a higher priced ad. Shopping search engines generally draw most of their traffic through arbitrage.

 

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Arbitrage: Arbitrage is the technique of simultaneously buying at a lower price in one market and selling at a higher price in another market to make a profit on the spread between the prices. Although . . . View Full Definition

Arbitrageur: One who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets. The Arbitrageur profits by simultaneousl . . . View Full Definition

Risk Arbitrage: Traditionally, the simultaneous purchase of stock in a company being acquired and the sale of stock of the acquirer. Modern risk arbitrage focuses on capturing the spreads between the market . . . View Full Definition

Arbitrage Pricing Theory (APT): An alternative model to the capital asset pricing model developed by Stephen Ross and based purely on arbitrage arguments. The APT implies that there are multiple risk factors that need to b . . . View Full Definition