Gain Capital Stock up by 23%
The share prices for Gain Capital has jumped by 23% after months of lowering. The United States listed brokerage had their shares jump dramatically after a series of acquisition rumours began to make headlines. After four days on the rumour mill, Gain Capital has still yet to comment on their sudden growth or potential acquisition. It’s rumoured that CMC Markets, the most significant rival to Gain Capital, could be acquiring the company in the coming months. CMC Markets hasn’t confirmed this rumour either.
Financial website, Betaville, was the original site to report this rumour mill. Taking into consideration the websites prior traffic was small before the rumour; some are unsure if this information is true or false. The UK-based site noted that their sources directly work with Gain Capital and have been involved with the acquisition process thoroughly.
True or False?
Before this rumour, the shares for Gain Capital were trading at an all-time low of $4 per share. The brokerage has struggled to maintain their trading volumes ever since the European Securities and Markets Authority introduced a new regulatory framework twelve months prior. Some analysts are speculating that this rumour is fake news, and an advertising ploy to increase popularity in the platform.
There have been multiple brokerages across the European Union that have been named as the future buyer of Gain Capitals. The most obvious candidates are CMC Markets and IG Group, both have market caps that outpace Gain Capitals. There has also been significant talk about how Jefferies or FXCM could be buying out Gain Capital as well.
Gain Capital & all the brokerages named haven’t confirmed the rumour mill. Until it’s approved by one of these financial firms, this information should be considered false, and the shares will continue to rise, with estimations listing the jump will end at 35%.