How to scan for Class B or C shares that are trading cheaper than A even though they should be valued at the same price? Example: Blockbuster B shares were illiquid and were trading at times 20cents below the A. IDT and IDT-C http://finance.yahoo.com/q/bc?t=2y&s=IDT-C&l=on&z=l&q=l&c=idt Thanks
To make money ;-) One strategy would be to buy the cheaper B and short the A. That is a safe trade. Example short blockbuster A knowing it would go bankrupt. But hedge the trade by buying the B.
thats the least of it in most cases takes too long for convergence though with the time value of money near zero, thats less of an issue, used to to better before the bots were willing to make 1 cent on an arb. I traded MCDT MCDTA every DAY for profit.