Stock Rumors

Stock Rumors move the market. When everyone hears a rumor about a company the stock price will reflect that.

Often time’s rumors will circulate throughout a company. These stock rumors can range from mergers and buyouts to layoffs and bankruptcy. Rumors tend to move the market as people try to stay ahead of the game.

When the actual news comes out it normally does little or nothing to the price of the stock because the rumor has already adjusted the price. This is where the saying “Buy on rumor, sell on news” comes in.

The thing you need to be aware of if you are trying to do this is that rumors are sometimes based on false grounds, or made up completely. If the actual news comes out and it is far worse than the rumor the company will most likely take a dive.