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by jorgeortiz85
6709 days ago
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Yes. Microsoft was down 4% on the announcement. It's merger arbitrage. Buy YHOO, short MSFT. If the merger doesn't go through, then sure, your YHOO stock will drop, but your MSFT stock will gain. If you get the right proportion of long/short YHOO/MSFT, you make money no matter what happens. (Where the "right proportion" is really complicated to figure out, and is often wrong.) |
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