Q. A strategy that consists of concurrent buying and selling of equal or comparable securities from at least two markets in order to profit from the variation in their prices is called:
Answer: Arbitrage
Notes: The correct answer is "Arbitrage." Arbitrage involves simultaneously buying and selling an asset in different markets to exploit price discrepancies. This practice helps ensure market efficiency, as it aligns prices across markets. Notably, the concept dates back to the 17th century, with early examples seen in the Dutch tulip market. Modern technology has enhanced arbitrage opportunities, allowing traders to capitalize on minute price differences almost instantaneously.