An investment strategy whereby an institutional investor capitalizes on profits that can be attained from mispricing opportunities that may arise during or after a corporate event (involving an issuer of mispriced securities). Corporate actions are usually analyzed by market observers (e.g., analysis) from different perspectives in order to provide a recommended course of action.

It is a trading approach that seeks to profit from pricing inefficiencies that may occur before or after a corporate event (such as a news release, bankruptcy, mergers, acquisitions, hostile takeovers, corporate restructurings, spinoffs, etc.)

As part of the broader category of equity oriented strategies, it involve long or short positions in investments made in tradable securities issued by companies that are currently experiencing substantial changes in its business or state of affairs such as spin-offs, mergers, liquidations, bankruptcies and other corporate events. The impact of such events is usually analyzed by experts and analysts in order to predict the possible outcomes of restructuring and take educated decisions, capitalizing on potential opportunities.

Event-driven strategies are closely correlated with the magnitude of corporate activity.