Arbitrage - The buying and selling of the same thing in different markets, as New York and
London, for the purpose of making a profit from the difference in quotations between such
markets; said chiefly of dealings in stocks and bonds, but also of dealings in exchange.

Arbitrage in stocks is based and conducted on temporary differences in prices between different
markets for the same stocks. In ordinary circumstances every stock has the same value in every
market in which it is dealt in.