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A Few Related Terms

Arbitrage
Long-short
Market Neutral
Risk Arbitrage

Special Situations
Term category: Strategies
In 10 words or less:  An event-driven strategy where an investor bets on takeovers, mergers, or bankruptcies.

Definition: Special situations refer to event-driven strategies, such as taking positions in companies that are going to be taken over, are distressed (facing bankruptcy), or are undergoing a management change.

StockJargon Advice: These types of strategies can produce huge returns for successful investors.  However, small investors tend to lack the resources to take full advantage of these opportunities.

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