Background Note | HBS Case Collection | November 2007

Event Arbitrage

by Joshua D. Coval and Erik Stafford

Abstract

The event arbitrage module includes two simulation sessions. The first simulation focuses on analyzing and evaluating individual merger transactions, while the second simulation emphasizes managing a portfolio of individual positions and the limitations of arbitrage investing in real-world capital markets. The underlying data and information are derived from actual merger transactions and have been disguised to prevent students from knowing the outcome ahead of time.

Keywords: Mergers and Acquisitions; Capital Markets; Financial Management; Investment Portfolio; Risk Management;

Citation:

Coval, Joshua D., and Erik Stafford. "Event Arbitrage." Harvard Business School Background Note 208-090, November 2007.