Pound, John; Zeckhauser, Richard J - In: The Journal of Business 63 (1990) 3, pp. 291-308
This article examines the effects of takeover rumors on stock prices using a sample of rumors published in the WALL STREET JOURNAL's "Heard on the Street" column. We find that the market reacts efficiently to rumors; simple trading strategies based on buying or selling rumored targets' stocks...