Whisper Stock


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.

  1. Takeover

    A corporate action where an acquiring company makes a bid for ...
  2. Insider Information

    A non-public fact regarding the plans or condition of a publicly ...
  3. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  4. Whisper Number

    1. Traditionally, the unofficial and unpublished earnings per ...
  5. Letter of Intent - LOI

    A document outlining the terms of an agreement before it is finalized. ...
  6. Market

    A medium allowing buyers and sellers of a specific good or service ...
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