Deal stock - Definition

Stocks of companies that are considered targets for acquisitions by other companies or take-over firms. This could be the result of the company stock being Undervalued compared to its Intrinsic Value. If the perception is that the merger will benefit the company in some manner, the rumour may motivate investors to go ahead and purchase outstanding shares before they begin to appreciate in value. Similarly if the takeover is considered to lower the targets value, they will consider short selling the security or selling the security if they already have a Position in it.

Terms near "Deal stock"

Deal Ticket
Dealer bank
Dealer market
Dealing Desk
Death benefit
Debenture stock
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