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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Char who wrote (17822)	11/27/1998 4:34:00 PM
From: Big Blue	Respond to of 119973

Here's what Barron's says on risk arbitrage. , As in the simultaneous purchase of stock in a company being aquired and sale of stock in its proposed aquirer. Also called Takeover arbitrage. Traders called arbitrageuers attempt to profit from takeovers by cashing in on the expected rise in the price of the target company's shares and drop in the price of the acquirer's shares. If takeover plans fall through, the traders may be left with enormous losses. Risk arbitrage differs from the riskless arbitrage, with entails locking in or profiting from the differences in the prices of the two securities or commodities trading on different exchanges. Hope that helps