When securities firms capitalize on discrepancies between prices of index futures and stocks, they are acting as so-called

Question

Quizplus · Accepted Answer

Arbitrageurs capitalize on discrepancies between prices of index futures and stocks by simultaneously buying and selling in different markets to make a profit. Raiders, greenmailers, and buyout artists refer to different types of corporate takeovers and are not relevant to this scenario.

When Securities Firms Capitalize on Discrepancies Between Prices of Index