What happens to my shares?

Question

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.

Answer 1

they company buying your company will pay a certain price per share like $14 per and thats what you will get per share.

Answer 2

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.

Answer 3

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.

Answer 4

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 .

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