Investment dictionary

GARBATRAGE

Garbatrage: translation

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.

  1. garbatrage—garbatrage translation Rising stock prices and increased market activity in an entire sector caused by a psychology change stemming from a major takeover involving two co...Financial and business terms
  2. garbatrage—сущ. фин. бирж. мусорный арбитражu гарбитражu торговля мусоромu повышенная активность по акциям компаний которые не имеют прямого отношения к объявленному крупному слияни...Англо-русский экономический словарь