takeover stock

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Takeover Stock

Stock in a company that is considered a primary target for a hostile takeover. Takeover stock is likely to rise significantly in price as rumors of a takeover are thought to increase demand.

takeover stock

A stock that, for various reasons, has good potential for being taken over by another firm. In 1985, companies engaged in radio and television broadcasting were considered potential takeover targets; as a result, their stock achieved significant price gains. See also in play, split-up value.
References in periodicals archive ?
For a company the size of Lilly, this is a manageable deal, so there shouldn't be major concern; but the market is worried about any funding issues at the moment," said one trader who specializes in takeover stocks.
Some of the more adventurous of the new breed of middle class investors began speculating in rumored takeover stocks, though they played this game at a distinct disadvantage, since they usually got these rumors from The Wall Street Journal--which meant, essentially, that they were the last to know.