• A whisper action describes a situation where a public company becomes the subject of speculation due to an upcoming buyout announcement.
  • Often this whisper is followed by an immediate spike in trading volume and stock price.
  • The buyback, if it occurs, will increase the price of the shares, allowing the trader who buys the shares to make a profit.
  • Whisper’s stock may come in reaction to other rumors of developments, although few are as positive and consistent in the long run as a takeover.
  • However, anyone who uses private company information in an attempt to make a profit is considered insider trading.