The accumulation of a target firm's stock by arbitrageurs makes purchases of blocks of stock by the bidder easier.

Question

Quizplus · Accepted Answer

The accumulation of a target firm's stock by arbitrageurs can increase the liquidity of the target firm's shares and create a more efficient market for the stock. This can make it easier for the bidder to purchase large blocks of the stock as there are more available sellers, potentially lowering the bid-ask spread and transaction costs.

The Accumulation of a Target Firm's Stock by Arbitrageurs Makes