Definition: In finance, "superinducement" refers to the phenomenon where a company's stock price rises significantly after it is acquired by another company. The reason for this rise in price can be due to various factors including:
1.
Acquisition Cost
: The cost of acquiring a new company is higher than its acquisition of an existing one, which can lead to a premium over the stock market.
2.
Market Reaction
: There may be increased buying pressure from other investors or consumers who are willing