BROWSE

Garbatrage

What is '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".

Explaining 'Garbatrage'

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.


Further Reading


Možnosti využitia hedžových fondov v Slovenskej republike
is.ambis.cz [PDF]
… The Act was created to stimulate the economy through individual and corporate tax cuts, leniency in unemployment benefits, increased domestic spending, and increased social welfare funding. Page 16 … applied economics—The application of economic theories and …

A Hierarchy of Limitations in Machine LearningA Hierarchy of Limitations in Machine Learning
arxiv.org [PDF]
… The Act was created to stimulate the economy through individual and corporate tax cuts, leniency in unemployment benefits, increased domestic spending, and increased social welfare funding. Page 16 … applied economics—The application of economic theories and …



Q&A About Garbatrage


Why do people feel optimistic about the takeover?

Speculators feel that the initial takeover is a precursor to more takeovers within the sector.

How does this relate to behavioral finance theory?

Proponents of behavioral finance theory would view this psychological impact as evidence that supports their theory.

What does garbatrage mean?

Garbatrage means rumor-tide or rumortrade.

What is garbatrage?

Garbatrage is an increase in price and trading volume of a particular sector of the economy that occurs as a result of a recent takeover.