Definition: Bosoming is a phenomenon in which a company's stock price rises rapidly after a significant acquisition, merger or reorganization. This can happen due to a combination of factors such as:
1.
New Investment
- The acquiring company may have acquired a new business that was previously underperforming or struggling.
2.
Strong Financials
- If the acquired company has strong financials and is performing well, it could cause its stock price to rise rapidly.
3.
Management's Focus