"Selected takeover stocks continued to be the focus of investor attention."

And other people holding takeover stocks get scared and sell, too.

He noted that the October options on some takeover stocks soared yesterday.

Other traders said that money seemed to be drifting out of blue chips and into takeover stocks.

There are also other reasons for takeover stocks to remain depressed, not the least of which is the growing regulatory risk.

It should have been no surprise that the proposals would depress takeover stocks.

But those small investors who want to speculate on takeover stocks actually have more opportunities these days.

They are thought to make huge profits on their investments, typically takeover stocks.

"Special situations and takeover stocks continued to be a focus," he added.

They also said that, except for takeover stocks, trading volume had been relatively moderate all week.