DEFINITION of 'Whisper Stock'

Shares in a company that is rumored to be the target of a takeover offer. The source of whisper stocks could be anybody from an investment banker involved in a deal, to the spouse of an executive privy to the information.

BREAKING DOWN 'Whisper Stock'

Remember, the "whisper" is just a rumor. There is no guarantee that the company will actually be taken over.

Further, there is a real question to the legality of the information. Getting caught trading on insider information is a quick way to a jail sentence.

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RELATED FAQS
  1. Under what circumstances might a company decide to do a hostile takeover?

    Learn about why companies use a hostile takeover to gain control of another company, and understand the different methods ... Read Answer >>
  2. What is the difference between an acquisition and a takeover?

    There is no tangible difference between an acquisition and a takeover; both words can be used interchangeably - the only ... Read Answer >>
  3. How can a company buy back shares to fend off a hostile takeover?

    Learn about why a business might use a stock buyback to thwart a hostile takeover attempt by reducing its total assets and ... Read Answer >>
  4. What happens to the stock prices of two companies involved in an acquisition?

    When a firm acquires another entity, there usually is a predictable short-term effect on the stock price of both companies. ... Read Answer >>
  5. How can I look up average banker's acceptance yields?

    Discover what a banker's acceptance note is, how it is commonly used, and where investors can find information on available ... Read Answer >>
  6. What happens to the shares of a company that has been the object of a hostile takeover?

    Learn about the effect on the share price of companies that are targets of hostile takeovers, which are tactics used by famed ... Read Answer >>
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