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Investments glossary

Arm’s Length Transaction


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Quotes of the day:

Stay away from needle drugs. Richard Nixon is the only dope worth shooting.

— Abbie Hoffman

An arm’s length transaction refers to a business deal in which buyers and sellers act independently without one party influencing the other. These types of sales assert that both parties act in their own self-interest and are not subject to pressure from the other party; furthermore, it assures others that there is no collusion between the buyer and seller. In the interest of fairness, both parties usually have equal access to information related to the deal.


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