Definitions for "garbatrage"
A term used to describe rising prices and volume throughout a sector due to...
Rising stock prices and increased market activity in an entire sector caused by a psychology change stemming from a major takeover involving two companies in the sector. Speculators feel other takeovers are likely in the sector. See: Rumortrage.
Traders' lingo--a combination of the words garbage and arbitrage--that represents stocks that rise because of a major takover. These stocks do not have any significant involvement in the target corporation or in its industry. Hence, they have no real reason to rise. See: Arbitrage; In Play; Rumortrage; Takeover