High-Yield
Investment Programs & Arbitrage
Whenever a discussion on investment strategies is
undertaken, sooner or later someone brings up the subject of arbitrage.
Most people hear the word and think of the character Gordon Gekko out of the
movie Wall Street and immediately have visions of empire... and vast
banking and wealth conspiracies... and arbitrageurs like T. Boone Pickens and
the infamous Hunt brothers. The reality is a bit different.
Arbitrage Explained...
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With respect to investments
in securities, arbitrage exists whenever and wherever there are market
inefficiencies, as arbitrage "works" to correct market inefficiencies.
Once the market becomes efficient (selling price offer and buying price bids
closely match one another), the arbitrage opportunity no longer exists and the
trader moves on to the next opportunity area. The current subjective
risk elements that plague the stock market exchanges serve to continually
create inefficiencies that allow for this type of investment manipulation and
security speculation.
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Think of arbitrage as a
traffic jam. A traffic jam is an extreme example of an inefficient
operation of highways and motorists respond by constantly switching from the
slow moving lane to the faster moving lanes seeking to keep moving at optimum
speed. When the traffic jam is cleared, the "traffic arbitrage" game is
over - until the next traffic jam is encountered and then the game starts
over. The same is true with security investment arbitrage - when the
difference between the offered sale price of a security (or commodity) and the
bid price to buy that same security is great enough, the arbitrageur steps in
and takes a middleman position until the price gap closes to a point where the
arbitrageur can no longer make a substantive profit on buying and reselling
the security of commodity.
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Day trading is the most extreme example of high-risk
arbitrage in that most day traders are assuming that excess market capacity
exists for trading of a given security and they are literally betting on the
change of a given security's price within the course of a single day (up or
down) where no pre-existing market inefficiency is found.
About
Rainmaker Marketing Corporation...
Rainmaker
Marketing Corporation is a consulting firm that focuses on providing the due
diligence services on a business to business (B2B) basis. Rainmaker
Marketing Corporation can trace its roots back to the late '80's and was
formally incorporated in 1994.
Over
the years, Rainmaker Marketing Corporation consultants have completed hundreds
of assignments across the United States (45 states), Mexico, Canada and the
Caribbean Basin. RMC's new construction project due diligence
documentation services have led to the successful development of
income-producing properties valued (in the aggregate) in the billions of
dollars.
Take
a few minutes and learn more about RMC. This website is designed to
provide a wealth of planning information pertaining to the capitalization,
operations, and organizational program tenets today's savvy entrepreneurial
company must embrace for continued growth and success... | 
