Convertible Arbitrage

You buy a red sports car in Maine for $35,000, drive it across the country, and sell it to someone else for $50,000 in California. Sucker...

In the world of finance, convertible arbitrage is a process of purchasing convertible assets like bonds and preferred stocks (which could be converted into common stock) while shorting the issuing company’s stock. However, this situation is highly theoretical and doesn’t appear very often in today’s digital markets. So...click on, Macduff.