Question

A professional who searches for mispriced securities in specific areas such as merger-target stocks, rather than one who seeks strict (risk-free) arbitrage opportunities is engaged in

Answer 1

Answer:

Risk arbitrage.

Explanation:

This strategy in business dealings is seen to be forced up when a form of security is been sold from a firm to another. This is done with its value been raised very high; not minding the risk been involved. It can also be described as a form of exploitation of the market especially when seen to be imbalanced. Especially in the trade of stocks; here, these stocks are been bought during these imbalance period and been given out for sale at high and outrageous prices.