Whisper Stock

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DEFINITION

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.

INVESTOPEDIA EXPLAINS

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.


RELATED TERMS
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  5. Bidder

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