Garbatrage
An increase in price and trading volume in a particular sector of the economy that results from a recent takeover creating a change in sentiment towards the sector. Also known as rumortrage. Investopedia Says:
The term is usually used in reference to firms not directly related to the takeover. Speculators feel that the initial takeover is a precursor to more takeovers within the sector. Proponents of behavioral finance theory would view this psychological impact as evidence that supports their theory. Related Terms:
Arbitrage
Behavioral Finance
Market
Public Company
Rumortrage
Sector
Speculator
Stock
Takeover |