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rumortrage

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Financial Dictionary

Rumortrage

A term often used by traders to refer to increased trading caused by a takeover rumor.

Investopedia Commentary

If firms A and C are both in the auto industry and rumors say that firm A will takeover firm C, an increase in trading in firms A and C's stock illustrates rumortrage.

Related Links

The Wacky World of M&As
The Basics of Mergers and Acquisitions
Trading the Odds with Arbitrage

See also: Garbatrage, Market, Sector, Speculator, Takeover

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