• Arbitrageurs are investors who exploit market inefficiencies of any kind. They are necessary to ensure that inefficiencies between markets are smoothed out or kept to a minimum.

  • Arbitrageurs are usually experienced investors, they must be attentive to details and ready to take risks.
  • Arbitrageurs most often benefit from price discrepancies in stocks or other assets listed on multiple exchanges.
  • In this case, the arbitrageur can buy the issue on one exchange and sell it on the second exchange, where the price is higher.