In the stock market, what are the general dynamics when there is a company acquisition?

Let's suppose that 2 companies are listed in the stock market, and there is an acquisition:


- What dynamic trends do we see? Does the buyer stock go up or down?


- What happens to the stock of the company that is being bought? Do the companies merge in one stock symbol?


- Any other stuff you wish to share about your acquisition experience?|||purchasing company stock goes down. target company goes up. Simple as that.





It is based on the idea that during the negotiation, the company being bought always knwo more about its prospects and will seek to extract as much value as possible out of the transaction, leaving the acquirer with the situation of having overpaid.