What's the difference between arbitrage and speculation?

Arbitrage


Definition:

  • (n.) Judgment by an arbiter; authoritative determination.
  • (n.) A traffic in bills of exchange (see Arbitration of Exchange); also, a traffic in stocks which bear differing values at the same time in different markets.

Example Sentences:

  • (1) In no time, Unilever’s shareholder register would have been populated by merger arbitrage funds.
  • (2) "Long term, the impact of this approach is that it should provide incentives for firms to dismantle corporate or capital structures that might have been developed to exploit tax or regulatory arbitrage," Myners said.
  • (3) Tom Gosling, reward partner at PricewaterhouseCoopers, said: "There is a wider question of differences in regulatory approach at the global level creating an uneven playing field, and a risk of geographic arbitrage in favour of jurisdictions that are perceived to be more lenient."
  • (4) HFTs employing latency arbitrage examine current market information to predict immediate price movements, essentially computing the best prices available before the exchange has even had a chance to update its price quote.
  • (5) In her lecture Cohen outlines the deal we have struck with the “surveillance-innovation complex”, involving a deeply worrying complicity between state and private actors - “a mutually satisfactory game of regulatory arbitrage”.
  • (6) This time, it relies on the kind of jurisdictional arbitrage familiar to so many lawless sites the world over: because its technical collection points are physically outside the US, it does not require authorization from either Congress or the Fisa court, even though the dragnet inevitably captures large amounts of data from Americans.
  • (7) More complex systems lead to a greater amount of arbitrage.
  • (8) For the sole purpose of repaying euro-denominated debts with a revived local currency, an official exchange rate between the euro and the local currency would need to be fixed with the ECB , under strict controls over such operations and capital flows and to prevent speculative arbitrage.
  • (9) Here are some tax techniques used by different companies over the years • Cross-border tax arbitrage • Hybrid debt instruments • Hybrid entities • Thin capitalisation • Thick capitalisation • Debt dumping • Loss buying • Outward domestication • Corporate inversions • Tax-efficient supply chain management • Intangibles fragmentation • Dividend buying • Company migrations • Dividend traps • Dutch sandwich • Swiss roundabout (long obsolete) • Value shifting • Defeased leasing • Capital allowance buying • Rent factoring • This article was amended on Thursday 5 February 2009.
  • (10) Better coordination has reduced the risk of regulatory arbitrage, and address the threat that banks will be, as the former Bank of England governor Mervyn King memorably put it , “international in life but national in death.” The US and the UK took the lead on reform, and Europe has been catching up.
  • (11) A financial transaction tax needs careful design, must be set at a modest rate without creating negative economic consequences and must minimise international tax arbitrage.
  • (12) Regulators and supervisors must protect consumers and investors, support market discipline, avoid adverse impacts on other countries, reduce the scope for regulatory arbitrage, support competition and dynamism, and keep pace with innovation in the marketplace.
  • (13) Privacy International said it had long suspected that members of Five Eyes have been playing "a game of jurisdictional arbitrage to sidestep domestic laws governing interception and collection of data".
  • (14) This requires a smart arbitrage by the news producers.
  • (15) The Globes have also found room for the unexpected reward: no one was tipping Richard Gere for the hedge fund thriller Arbitrage , or Jack Black for the mortician-murder comedy Bernie.
  • (16) It seems fanciful to imagine Britons who spent two weeks glued to the TV will, like Stakhanovites, suddenly meet higher norms in car production, healthcare and financial arbitrage.
  • (17) More surprises included a nod for Nicole Kidman as best supporting actress for her role in The Paperboy, and Richard Gere as best actor for Arbitrage.
  • (18) Trendon T Shavers, from KcKinney in Texas, was the founder and operator of "Bitcoin Savings and Trust" (BTCST), allegedly raised a total of 700,000 Bitcoins in 2011 and 2012 – then worth about $4.5m – for his scheme, claiming that he made his profits on market arbitrage.
  • (19) Moreover, the higher the gap between official interest rates and the higher rates on mortgage lending as a result of macro-prudential restrictions, the more room there is for regulatory arbitrage.
  • (20) A burgeoning trade in exploiting the anomalies of cross-border "tax arbitrage" was also curtailed.

Speculation


Definition:

  • (n.) The act of speculating.
  • (n.) Examination by the eye; view.
  • (n.) Mental view of anything in its various aspects and relations; contemplation; intellectual examination.
  • (n.) The act or process of reasoning a priori from premises given or assumed.
  • (n.) The act or practice of buying land, goods, shares, etc., in expectation of selling at a higher price, or of selling with the expectation of repurchasing at a lower price; a trading on anticipated fluctuations in price, as distinguished from trading in which the profit expected is the difference between the retail and wholesale prices, or the difference of price in different markets.
  • (n.) Any business venture in involving unusual risks, with a chance for large profits.
  • (n.) A conclusion to which the mind comes by speculating; mere theory; view; notion; conjecture.
  • (n.) Power of sight.
  • (n.) A game at cards in which the players buy from one another trumps or whole hands, upon a chance of getting the highest trump dealt, which entitles the holder to the pool of stakes.

Example Sentences:

  • (1) It did the job of triggering growth, but it also fueled real-estate speculation, similar to what was going on in the mid-2000s here.” Slowing economic growth may be another concern.
  • (2) It has been speculated that these cigarette smoke-induced alterations contribute to the depressed pulmonary defense mechanisms commonly demonstrated in smokers.
  • (3) We speculate that this cleavage event is catalyzed by either a cryptic potyviral proteinase that requires a host factor or subcellular environment for activation, or possibly a host proteinase.
  • (4) 9.23pm GMT Expect the reporters to get even more speculative and desperate from hereon in.
  • (5) So it was speculated that the enhancement of pulmonary metastasis needs remaining of irradiated tumor in bodies of mice for a certain period.
  • (6) We speculate that intestinal injury may also induce or perpetuate arthritis by systemic distribution of inflammatory mediators produced by intestinal immune effector cells.
  • (7) We speculate that the preferential rupture of the H2B-H4 contact is of physiological significance.
  • (8) Such an explanation not only remains vague and speculative but deserves criticism also for being incomplete.
  • (9) One may speculate whether clinical conditions exist--apart from hereditary retinal dystrophies--in which the retina becomes more sensitive to light from strong artificial or natural sources, which are otherwise innoxious.
  • (10) The literature concerning the possible effects of tetracyclines on hemostasis with or without antecedent anticoagulation therapy is reviewed and the speculated mechanisms for such an interaction are discussed.
  • (11) Cable, once a leading critic of City speculation, insists the shares will go to responsible investors.
  • (12) "Getting a 95% loan to value mortgage lets you speculate on the expected house price increases a lot more than a 75% mortgage," he said.
  • (13) Thus one may speculate that endothelin plays a role in the coronary spasm which has been shown in patients with angina pectoris.
  • (14) Gerson Zweifach, general counsel for both News Corp and 21st Century Fox , Murdoch’s film and TV business, said: “We are grateful that this matter has been concluded and acknowledge the fairness and professionalism of the Department of Justice throughout this investigation.” It is understood there has been no background settlement with the Department of Justice in order to avoid a full-blown investigation, contrary to speculation in New York over a year ago that the company was looking at a possible payment of over $850m.
  • (15) Dealers speculated that Facebook's army of bankers had stepped in to stop the shares falling below $38, a move that would have landed the social network with a public relations disaster on its first day as a public company.
  • (16) If we were to have a plebiscite before the end of the year, and you were to reverse-engineer that, it would make interesting speculation about the timing of an election.” Abetz said in January he would need to see whether a plebiscite was “above board or whether the question is stacked” before deciding to heed any result in favour of marriage equality.
  • (17) Undoubtedly because new theories remain speculative when viewed from our own standpoint.
  • (18) Lack of transparency about the nature of the relationship between police and media also led to speculation and perceptions, whatever the facts, that caused "serious harm".
  • (19) The similarity of the low-K breathing pattern to that observed with reserpine administration together with the known relationships of K and catecholamine metabolism lead to the speculation that K depletion alters breathing via an effect on central catecholamine metabolism.
  • (20) Last week, Park offered a public apology after acknowledging Choi had edited some of her speeches and provided help with public relations, but South Korea’s media have speculated Choi played a much larger, secret role in government affairs.