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.

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  3. Hostile Takeover

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  4. Insider Information

    A non-public fact regarding the plans or condition of a publicly ...
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    A market holiday or a slow trading day.
  6. Hunting Elephants

    The practice of targeting large companies or customers.
RELATED FAQS
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  4. What tax implications are there for parties involved with a reverse repurchase agreement?

    A reverse repurchase agreement – sometimes referred to as a reverse repo – is the purchase of an asset with a simultaneous ... Read Full Answer >>
  5. What happens if a software glitch fails to execute the strike price I set?

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  6. Are so-called self-offering and self-management covered by "Financial Instruments ...

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