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.

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Stock traders' term, combining garbage and Arbitrage, for activity in stocks swept upward by the psychology surrounding a major takeover. For example, when two leading entertainment stocks, Time, Inc., and Warner Communications, Inc., were In Play in 1989, stocks with insignificant involvement in the entertainment sector became active. Garbatrage would not apply to activity in bona fide entertainment stocks moving on speculation that other mergers would follow in the wake of Time-Warner. See also Rumortrage.