In the capital market, simultaneous purchase and sale of securities to reduce the loss on purchase is known as __?
Q. In the capital market, simultaneous purchase and sale of securities to reduce the loss on purchase is known as __?
Answer: Arbitrage
Notes: Arbitrage is a type of trade in which a security is simultaneously bought and sold, in different markets. This type of trade takes advantage of the difference in prices of the same financial instrument being offered on different exchanges.

 

The above question is part of 35000+ General Studies MCQ Series Course on GKToday Android app.