Rumortrage

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stock traders’ term, combining rumor and arbitrage, for buying and selling based on rumor of a takeover.
See also deal stock; garbatrage.

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A term often used by traders to refer to increased trading caused by a takeover rumor.

Investopedia Says:
If firms A and C are both in the auto industry and rumors say that firm A will takeover firm C, an increase in trading in firms A and C's stock illustrates rumortrage.

Related Links:
In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game. Mergers And Acquisitions: Understanding Takeovers
Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work. The Basics Of Mergers And Acquisitions
Profiting from arbitrage is not only for market makers--retail traders can find opportunity in risk arbitrage. Trading the Odds with Arbitrage


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Garbatrage (finance term)
Takeover (finance term)