New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    Simultaneous buy and sale of an assets to book profit

    is called as -
    A Arbitrage Correct Answer Incorrect Answer
    B Insider trading Correct Answer Incorrect Answer
    C Option trading Correct Answer Incorrect Answer
    D Margin profit Correct Answer Incorrect Answer
    E Leverage Correct Answer Incorrect Answer

    Solution

    Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies.

    Practice Next