Difference between pure arbitrage and risk arbitrage


Response to the following questions:

1. What are the advantages and disadvantages to a new or small firm of getting capital funding from a venture capital firm?

2. What is the difference between pure arbitrage and risk arbitrage? If an investor observes the price of a stock trading in one exchange to be different from its price in another exchange, what form of arbitrage is applicable and how could the investor participate in that arbitrage?

 

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Financial Accounting: Difference between pure arbitrage and risk arbitrage
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