Understanding Whisper Stock

Explain : Whisper Stock A public company's shares can briefly become a whisper stock if rumors circulate that the company is the target of a takeover offer. The whispers will probably be followed by an immediate surge in trading volume and an increase in its share price. When two companies discuss a merger or an acquisition of one company by the other, the talks are held in the strictest secrecy. An insider who acts on the information in an attempt to make a profit or help someone else make a profit is committing the crime of insider trading. Its price can fall back to Earth just as quickly when the whispers stop, whether they prove to be true or false.

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