Arbitrage is one of the most fundamental principles of economics, and that holds for the tax system as well. A peculiar problem arises when personal income tax rates are much higher than tax rates on corporate perks and benefits. Assume, for instance, that workers face marginal income tax rates of 50% to 60%. If the company served fresh high-quality sushi …
Global investors are gobbling up bonds that can be turned into stocks, feeling good about the prospects and return potentials of smaller companies. One-fifth of the notes outstanding are trading below face value — it’s enough evidence of investor worries that many of the smaller listed firms are not able or willing to survive. The default of Sou Yu Te …
Traders usually make money, or look forward to making money, by buying stocks at low prices and selling them at high. There is, however, one strategy – currency arbitrage -- where traders buy and sell at the same time at different prices to make money from the variation in prices at which two transactions are carried out. A currency arbitrage …
