Garbatrage

Garbatrage
An increase in price and trading volume in a particular sector of the economy that occurs as a result of a recent takeover, which initiates a change in sentiment toward the sector.

Garbatrage is also known as "rumortrage".

Garbatrage is usually used to refer to firms that are 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.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • garbatrage — Rising stock prices and increased market activity in an entire sector caused by a psychology change stemming from a major takeover involving two companies in the sector. speculators feel other takeovers are likely in the sector. Bloomberg… …   Financial and business terms

  • получение прибыли на слухах — Термин, использующийся торговцами акциями, в котором соединяются слова слухи (rumor) и арбитраж (arbitrage), для обозначения покупок и продаж ценных бумаг, основанных на слухах о поглощении (takeover). См. также deal stock; garbatrage …   Финансово-инвестиционный толковый словарь

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