What is another word for risk arbitrage?
Pronunciation: [ɹˈɪsk ˈɑːbɪtɹɪd͡ʒ] (IPA) 
Risk arbitrage refers to the strategy of taking advantage of market inefficiencies by buying and selling securities in a manner that reduces risks and maximizes profits. This practice can be known by several synonyms, including "event-driven trading," "merger arbitrage," and "special situations investing." Event-driven trading refers to the practice of identifying market events such as mergers, acquisitions, and other corporate events that may create opportunities for arbitrage. Merger arbitrage is the practice of investing in companies undergoing a merger with the goal of profiting from the price differences between the acquiring and target company's shares. Special situations investing refers to a broader category that includes investments in distressed or undervalued companies. Regardless of the name, risk arbitrage requires careful analysis, as market inefficiencies can be short-lived and require swift action.
