The movement of securities from one stock exchange to another with the object of reaping a profit from the disparity in share prices is called __________.

Averaging

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Arbitraging

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Back wardation

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Forward Trading

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Solution

The correct option is B Arbitraging
Arbitrage is a process of taking out the profits by movement of securities from one stock exchange to another due to price disparity.
Arbitrage is the simultaneous purchase and sale of an asset to profit from an imbalance in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms.

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