Investopedia explains 'Rumortrage'
While rumortrage is not an uncommon practice, it often leads to uninformed retail investors becoming M&A speculators, taking undue risks in the wake of nothing more than a rumor or hearsay.
For example, if firms A and C are both in the auto industry and rumors say that firm A will take over firm C, an increase in trading in firms A and C's stock illustrates rumortrage.
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