What is Deal Stock?
Deal stock is the stock of a given company that may be considered a bargain or a deal under current circumstances. Outstanding shares of stock become deal stock when rumors about upcoming events that will impact the value of the stock begin to circulate. The rumors may have a positive or negative effect on the perception of the stock on any market where the shares are traded. One of the more common types of rumors that will create deal stock involves word of a merger or takeover. If the perception is that the merger will benefit the company in some manner, the rumor may motivate investors to go ahead and purchase outstanding shares before they begin to appreciate in value. At the same time, if the merger is expected to ultimately be damaging for the company, investors may take steps to being selling off any shares currently held in order to avoid losing money when the value of the shares drop. The same is true if rumors of a takeover attempt begin to circulate. When a company is percei
