Whisper Stock

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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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Takeover

    A corporate action where an acquiring company makes a bid for ...
  2. Whisper Number

    1. Traditionally, the unofficial and unpublished earnings per ...
  3. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  4. Insider Information

    A non-public fact regarding the plans or condition of a publicly ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  6. Asset Valuation Review (AVR)

    A process that establishes an estimate of the value of a failed ...
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