Tuesday, September 27, 2011

What happens if you own stock in a company and it get bought by another company?

I am curious what happens if you buy stock in a company, and another company buys it out. Do I lose the stock I currently have? Will I have the oppourtunity to sell it?|||You usually get a letter from company X (the company shares you own) stating that they are being taken over by someone else, company Y. The letter will also tell you what exactly will happen happen with your shares of company X.





Typically, you will get new shares of company Y( in this case the company that bought X).





Everything will be clearly stated in the letter.





If you are really anxious, call company Y and ask them how many shares you will get.|||You still own stock in the subsiduary company, and often it becomes more valuable.|||That happened to me. I held on to it and the stock split. Initially the price of each share dropped, then it gradually climbed back up. I quadrupled my money in 5 years. I am one happy camper but it depends on the companies involved, the industry outlook etc.


Just saying that it can be swe-e-e-e-et!! : )|||I believe you will loss all your shares. I suggest selling before you they steal it from you|||you keep it. however if the goodwill value of the old company was over priced, the value of stocks will go down. if own stocks you shud follow closely on the buyout |||"Go directly to Jail" - Monopoly

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