Tag «arbitrage»

Earnings and surprises…

For the past two days, we’ve witnessed one of what I would personally considered as the most hilarious jokes of the year unfolded on Wall Street. Quick quiz to those of you who are reading this: 1. If a company that has not lost a single cent ever since it went public in 1999, and …

Wachovia and Wells Fargo Merger – A short study on the market efficiency and no arbitrage theory

In front of me is a copy of the shareholder’s prospectus on the Wachovia and Wells Fargo merger. Put all the excitement aside (since this is the first time I am voting as a shareholder for a legal entity, although practically I do not hold any stock of Wachovia Corp as this point although I …

Have we just killed another George Soros?

Recently, I’ve been following very closely with the case of Societe Generale and now-infamous trader Jerome Kerviel, who is been blamed for causing close to 5 billion Euros of loss as a result of trading on futures contact. I was amazed, honestly, by the fact that he was able to, single-handedly (although this is being …