Legal Definitions - whisper stock

Whisper stock refers to the stock of a company that is rumored to be the target of a takeover attempt. It is a term used in the stock market to describe a situation where there is speculation that a company may be acquired by another company.

For example, if there are rumors that Company A is going to be acquired by Company B, the stock of Company A may be considered a whisper stock. Investors may start buying the stock of Company A in anticipation of a potential takeover, which can drive up the stock price.

Another example is when there are rumors that a company is going to release a new product that will revolutionize the industry. The stock of that company may be considered a whisper stock as investors speculate on the potential success of the new product.

These examples illustrate how whisper stock is based on rumors and speculation rather than concrete information. It is important for investors to do their own research and not solely rely on rumors when making investment decisions.