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Question about stock investment? |
If I invest in a company, and the company is bought out by another company, what happens to the value of my shares? generally when a company buys another the offer is higher than the going stock price so your shares are bought at the higher rate or exchanged for equivalent value shares in the purchasing company. The value of your shares will be negotiated in the sale of the company. A takeover is usually a boon for the shareholders of the company being bought. You either get cash or shares of the acquiring company. It's usually more, less if the stocks in bankruptcy It depends. Who buys? If it is a private company that buys it then they might just give you cash for your stock. The price you would get depends on the purchase price. Other times the new company will give you shares of their stock. It is not always an even number exchange it will depend on the new value of the stock company buying yours out. A third option is that you might get cash and stock of the new company. The bottom line is it is out of your control. It maybe a good out come which most of the time it is. But if you paid too much for the stock originally then you may lose some. |
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