Most of these concentrate on M&A Arbitrage (Mergers and Acquisitions) - or more usually Mergers.

The manager will actively seek companies which have been targeted as potentials for takeover, and buy into that company, in hope M&A activity will drive up price.

This method is often enhanced by use of leveraging (gearing up / borrowing) (remember LTCM?) - and sometimes using Derivative Structures such as Options - or hedging methods such as selling short.

Depending on structure, methodology, management style, leveraging etc., potential rewards can be substantial, but so can risks.

Not all Arbitrage investments are same - just like any other asset class, I would strongly suggest that anyone considering this should perform their own Due Diligence and seek professional advice.

One very common place where Arbitrage happens every day - by people just like you and me..... is eBay!

Sellers are locating items for sale from sources which may sell them very cheaply (flee-markets, garage sales etc.) and then selling them online for a tidy little profit.

These people are exploiting price differential - arbitrage - and there's nothing wrong with that!!

It’s all about ‘Supply and Demand’ - but that’s another story!

(the information contained herein is for information purposes only and should NOT be considered as advice or recommendation relating to purchase or sale of any investment).

An article by Gary Durkin Founder of the Internet Advice Center® http://www.InternetAdviceCenter.com

© Copyright 2005 - All Rights Reserved worldwide.

New Cars

You can save thousands of pounds over lifetime of a car by selecting a model that combines a low purchase price with low financing, insurance, petrol, maintenance, and repair costs. Having selected a model, you can save hundreds of pounds by doing a comparison. Call at least four dealers for price quotes and let each know that you are calling others.

Airline Fares

You may lower price of a round trip air fare by as much as two-thirds by making certain your trip includes a Saturday evening stay over, and by purchasing ticket in advance. To make certain you have a cheap fare, even if you use a travel agent, contact all airlines that fly where you want to go and ask what lowest fare to your destination is. Be flexible, if possible. Consider using low fare carriers or alternative airports and keep an eye out for fare wars.

Mortgage Refinancing

Consider refinancing your mortgage if you can get a rate that is at least one percentage point lower than your existing mortgage rate and plan to keep new mortgage for several years or more.

Home Purchase

Have a full survey done and use results of survey to negotiate a lower sale price.

Home Improvement

Select from among established, licensed contractors who have submitted written, fixed-price quotes for work. Do not sign any contract that requires full payment before satisfactory completion of work.

Major Appliances

There are often great price and quality differences among brands. Once you've selected a brand call at least four shops for prices of specific models. After each shop has given you a quote, ask if that's lowest price they can offer you. This comparison shopping can save you as much as £50 or more.

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