Though many people are invited to Gatsby's legendary parties, it's amazing that none of them actually seem to know who he is. They're happy to rock up at Jay's opulent mansion, eat his food and drink his booze, and yet they are still remarkably ignorant when it comes to the identity of their host.

Such ignorance of Gatsby inevitably invites a fair amount of speculation concerning his identity. Rumors fly around like confetti, each one more far-fetched and outlandish than the last. Some say that Gatsby is an Oxford graduate. Less plausibly, others maintain that he's a German spy. Even more ludicrously, still others claim that Gatsby once killed a man.

All of these rumors add to the sense that Gatsby is a man of mystery. This only adds to his allure, making him a more fascinating character than would otherwise have been the case. Like the guests who turn up to his parties, we want to find out more about Jay: who he is, where he comes from, how he made his millions, and so on.

As with all great writers, Fitzgerald understands that a mysterious character is so much more interesting, so much more compelling, than one who is an open book.

In The Great Gatsby by American writer F. Scott Fitzgerald, rumors that have been told about Gatsby include some thinking that he is Kaiser Wilhelm’s nephew or cousin. Some believe this is the origin of all his wealth, as Gatsby lives in an opulent mansion in West Egg, Long Island.

Another rumor revealed in the novel is that one young woman says that Gatsby doesn’t want trouble with anybody. She had ripped her gown at a previous party at Gatsby’s and he had a new gown sent to her residence the following week. She states to others that he did this for the aforementioned reason. This is not her opinion, but it is a rumor she is spreading. She says that somebody told her that Gatsby doesn’t want trouble with anyone. There is no evidence that Gatsby, here, is worried about trouble.

In addition, a rumor going around about Gatsby is that he killed a man. Furthermore, rumors exist that he was a spy for the Germans and also that he was a soldier in the U.S. army. Rumors also exist because one woman doesn’t believe that Gatsby went to Oxford, even though he told her that he did. She tells Nick she doesn’t believe Gatsby.

As the novel progresses it is revealed that some believe Gatsby to be a bootlegger. This could explain his wealth as he would have reaped significant dollars from an illegal activity and evaded taxes in the process.

F. Scott Fitzgerald reveals rumors rather than fact in the novel to add mystery to the novel - and to Gatsby’s character, as the above educator writergal06 rightly notes: “much of the appeal of Gatsby is his mystery.”

Furthermore, Fitzgerald reveals rumors so that readers can form their own opinion of Gatsby as the story progresses, and then change or refine those opinions as facts are revealed in the story. In this way, readers are participants in the mystery of the story. It’s important to note that in Chapter Four of the novel, Gatsby himself asks Nick, “Look here, old sport,” he broke out surprisingly. “What’s your opinion of me, anyhow?”

Gatsby wants Nick to understand who he truly is; at least that is what he says to Nick. He says, in essence, that he doesn’t want Nick to have a tainted view or opinion of him based on stories (rumors) that he has heard from various people.

In the end, the reader has to form his or her own opinion of Gatsby, through facts revealed about him in the novel as it goes along, and through Gatsby’s actions in the novel. Nonetheless, Nick relates that what is important is:

“…it is what preyed on Gatsby, what foul dust floated in the wake of his dreams that temporarily closed out my interest in the abortive sorrows and short-winded elations of men.”

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There are several rumors circulating about Gatsby, mostly about how he made his fortune. Bootlegging is the most common, and most probable, though all the others deal with criminal activity of some kind. There are also many speculations about where he came from, where he went to school, etc. 

The more significant aspect of this question is why Fitzgerald presents Gatsby's character through rumors. First, we are experiencing the novel through Nick's perspective. Therefore, the audience discovers information as Nick does. Nick doesn't find out Gatsby's true story until later on the novel (Chapter 6). Second, much of the appeal of Gatsby is his mystery. If we knew facts about Gatsby rather than rumors, the mystery would be gone. Finally, it is important to Gatsby's  psychological development that we get to know him in stages. By the time his true past is revealed, we are captivated and intrigued. As he tells Nick his true background, we move from captivated to sympathetic, an important transition for the ending of the novel to be fully felt. 

Why did Gatsby have a lot of rumors about him? What were the rumors that were said about Gatsby?

Jay Gatsby in The Great Gatsby has carefully crafted his persona, apparently, before Nick ever meets him in the narration we read.  He is purposely mysterious, partly, as far as we can tell, because of his business, which he, we assume, wants to keep secret.  It seems important for him to keep a low profile, at least as far as business is concerned. 

His mystery also comes from the fact that in some circumstances he is reticent and shy.  He is not comfortable in some social settings.  Even at his well-attended and lavish parties, he barely talks to anyone.  He seems to live very much within his own mind. 

Part of his living within himself is also due to his obsession with Daisy.  If you are not Daisy or somehow connected to Daisy, he really doesn't have any natural interest in talking to you. 

Finally, his mystery is designed to captivate, specifically to captivate Daisy.  Gatsby has an aura about him.  He seems bigger than life (he is referred to as "great" in the title, though this is partially ironic), and he has to be, he thinks, to recapture Daisy.

Gatsby's own mystery, then, lends itself to rumors.  You put a bigger-than-life figure in a mansion frequented by wealthy guests, and you will get rumors.  Especially when he keeps his business affairs secret and his thoughts to himself.

Why did Gatsby have a lot of rumors about him? What were the rumors that were said about Gatsby?

The author allows for and creates these rumors to characterize Gatsby and give credence to the type of person that might have been a regular fixture in 1920s America.

The rumors listed above served to make us second guess Gatsby's identity. Much illegal and/or immoral activity was going on in the 20s and wrapping his character in what might have surrounded a character who two lives like Gatsby seems to during Prohibition.

Tom professes later that Gatsby was likely a bootlegger. This could relate to someone like Al Capone. If Gatsby was involved in shady dealings, he likely lived the high life in front of his friends but did dirty deals behind the scenes.

Why did Gatsby have a lot of rumors about him? What were the rumors that were said about Gatsby?

There are a number of rumors about Gatsby, some true, some not true.  There are rumors that say that he has killed a man.  We do not know if those are true or not.

There are rumors that say that he was related to the ruler of Germany (from World War I) -- the Kaiser Wilhelm.  These are clearly not true.

There are also rumors that say he has made his money illegally, through bootlegging and such.  These seem to be true.

To me, the rumors are meant to show how aloof and mysterious Gatsby is to the people who come to his parties.  They do not really know him even though they are at his home so often.

What rumors have been told about Gatsby? Why does Fitzgerald reveal rumors rather than facts?

In F. Scott Fitzgerald's The Great Gatsby, Jay Gatsby proves to be as great and as enigmatic as the title of the novel would suggest. Before even meeting Gatsby, the reader is told that the strange man is rumored to be a bootlegger, a spy for the Germans, or even a murderer. All in all, the only thing that people seem to know for certain about Gatsby is that he is fabulously rich and throws good parties.

Far more interesting, however, is Fitzgerald's reasoning behind this fabrication. As the novel suggests, the person at the center of the narrative is going to be great, larger than life, an almost mythological character. As such, Fitzgerald dutifully weaves a mythos around his protagonist, building him up to legendary proportions. In doing so, Fitzgerald sets himself up to draw a sharper contrast once he reveals that Gatsby was in fact very poor, and only became rich to impress a girl. After spending most of the novel considering Gatsby to be a magnificent and special figure, the true nature of his rather pedestrian origins becomes even more disappointing. It would appear that the "Great" Gatsby is not so incredible after all.