The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known as arbitrage.

Name: The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known as arbitrage.
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Arbitrage involves exploiting price differences of identical or similar financial instruments in different markets or in different forms to achieve risk-free profit until the prices converge.

The Process of Buying an Underpriced Security and Selling an Equivalent