Powerschool Stock's Buyout Bait: Don't Get Hooked on a Risky Rumor

I suspect that some people won't pay much attention to Powerschool's less-than-ideal financials, and will only buy Powerschool stock because they're expecting a takeover of the company. However, that's a dangerous reason to buy the shares. In a highly efficient and forward-looking market, stocks can quickly rise on takeover talk and barely move, or even decline, when a buyout actually occurs. Worse yet, acquisition negotiations can breakdown and, as a result, stocks might quickly decline. A good starting po ...