merger arbitrage

MERGER ARBITRAGE – An individual investor can access this investment strategy through mutual funds. After mergers are announced but before the closing is certain, these funds by the stock of a company being acquired and take advantage of the small increase in the stock as the deal becomes more certain. This investment typically has a low correlation with the overall stock and bond markets.

merger arbitrage

By Mr. Moneyface

I blog about alternative investments and unusual ways to invest your money. See this list: 150 Types of Investments!