The evidence of pairs trading profits in stock futures supports the view that these profits reflect compensation to arbitrageurs for enforcing the law of one price in similarly related markets to ensure market
Market inefficiencies are not confined to subscription rights but they can also affect the pricing of newly issued shares and the stock price of the issuing company. Naveen Kumar et al. (2018) found that new shares in Indian equity offerings are typically undervalued. Literature also suggests that...
merger, recapitalization, reorganization, liquidation, self-tender, etc. In most cases the arbitrageur expects to profit regardless of the behaviour of the stock market. The major risk he usually faces
Moreover, hedge funds and private equity firms are active in a variety of trading strategies – popularly known as capital structure arbitrage – that attempt to arbitrage across equity and credit markets. Given active arbitrageurs and integrated equity and credit markets, stock returns and changes ...
ARBITRAGE PRICING THEORY TESTED IN INDIAN STOCK MARKETBal Krishan Dr. Rekha Gupta
Using recent single stock futures data, this article explores specific arbitrage details of single stocks vs. their futures in the Indian market. The zero arbitrage band width for this type of arbitrage was found to be typically at least twice than that occurring in mature global markets and in...
Stock market plays an important role in the global economy and Indian economy become progressively significant part of the world economy; we are interested in the Indian stock market. After we compared the methods on the stock market, we choose to use the CAPM and the APT model on Indian ...
Arbitrage Opportunity for Exchange Traded Funds (ETFs) in the Indian Stock Market - An Empirical AnalysisExchange Traded FundsArbitragePremiumdiscountExchange-traded funds (ETFs) are generally index-based funds that allow investors to buy or sell exposures to an index through a single financial ...
(2005). Arbitrage Pricing Theory and the Capital Asset Pricing Model - Evidence from the Indian Stock Market. Journal of Financial Management and Analysis, 18(1), 14-27.Dhankar, S. & Singh, R. S. (2005). Arbitrage Pricing Theory and the Capital Asset Pricing Model - evidence from the ...