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What happens to my shares?
What happens to the price of my shares when a company I have stock in is bought out by another company? Lets say my shares were at $10 per when the buy-out was made, and the acquiring company's shares were at $50 per. Is this my chance to greatly increase the value of my shares, or am I forced to sell at last cost before the deal was made? Thanks for any help.
4 Answers
- kateLv 71 decade agoFavorite Answer
They can do several things for a merger .
Most often they do a comprable exchange so that
For $1000 worth of your old stock ,
they give you $1000 worth of the new company .
You may end up with more or fewer shares ,
But your net value on the date of the merger should be equal .
>
- Steve DLv 71 decade ago
You should get an option of taking the $50 or having the new company trade shares in the new company to you for your shares in the old company.
- JudyLv 71 decade ago
Sometimes you get cash, sometimes you get shares of the new company or a combination of shares and cash. Once the buyout is approved, they'll tell you what you will get. And if you get shares, you don't get the same number of shares in the new company as you had in the old. In your example you might get 1 share of the new company for every 5 shares you had of the old company.
- Anonymous1 decade ago
they company buying your company will pay a certain price per share like $14 per and thats what you will get per share.
