Changing limits and opportunities in globalized financial markets: an overview

Abstract

Th is volume examines how entrepreneurial fi rms and organizations can benefi t from seeking out and exploiting alternative options for fi nancing their capital assets. Th e discussion takes place in the context of the globalization of fi nancial markets and the aftermath of the global fi nancial and economic crisis, trends which put a premium on the full exploitation of alternative fi nance sources and the arbitrage amongst them. Th ere is still a long way to go in ensuring that entrepreneurial ventures and projects recognize and take advantage of the range of fi nancing opportunities available to them, and both information and appropriate strategies will be required. In this overview paper we fi rst consider the overarching issues involved in arbitrage between capital sources in the fi rm and then the major messages in this respect of the articles that follow in this special issue. Arbitrage between capital sourcesTh e strict essence of fi nancial arbitrage is the attempt to profi t from price diff erences across fi nancial instruments and markets by buying in one market and selling in another, or buying one fi nancial instrument and selling another. Th e true 'arbitrageur' attempts in this way to exploit temporary or systematic price discrepancies arising from market ineffi ciencies. Th is volume nonetheless adopts a slightly wider