arbitrage

American Heritage® Dictionary of the English Language, Fourth Edition

1. n. The purchase of securities on one market for immediate resale on another market in order to profit from a price discrepancy.
2. v. To be involved in arbitrage.

Century Dictionary and Cyclopedia

1. n. Arbitration. R. Cobden.
2. n. The calculation of the relative value at the same time, at two or more places, of stocks, bonds, or funds of any sort, including exchange, with a view to taking advantage of favorable circumstances or differences in payments or other transactions; arbitration of exchange.
3. n. The business of bankers which is founded on calculations of the temporary differences in the price of securities, and is carried on through a simultaneous purchase in the cheaper and sale in the dearer market.

Wiktionary

1. n. The practice of quickly buying and selling foreign currencies in different markets in order to make a profit
2. n. The purchase of the stock of a future takeover target, with the expectation that the stock will be sold to the person executing the takeover at a higher price
3. n. Any market activity in which a commodity is bought and then sold quickly, for a profit which substantially exceeds the transaction cost
4. v. intransitive, finance To employ arbitrage
5. v. transitive, finance To engage in arbitrage in, between, or among

GNU Webster's 1913

1. n. Archaic Judgment by an arbiter; authoritative determination.
2. n. (Com.) A traffic in bills of exchange (see Arbitration of Exchange).
3. n. (Finance) the simultaneous or near simultaneous purchase and sale of the same or closely linked securities or commodities in different markets to make a profit on the (often small) differences in price.

WordNet 3.0

1. n. 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
2. v. practice arbitrage, as in the stock market