What happens to the share which i have with me, once the company is overtaken by any other company?

Question

What happens to the share which i have with me, once the company is overtaken by any other company?

Answer 1

nothing

Answer 2

Hi Bishwanath,

Say for example, you have shares of Yahoo! and Microsoft takes over Yahoo! Assume you have 100 shares of Yahoo! When Microsoft agrees to acquire Yahoo!, it will declare its swap ratio. This ratio states how many shares of Microsoft will be issued to the shareholders of Yahoo!, and in what proportion. Say, the ratio is 1-for-2, then one Microsoft share will be issued against 2 shares of Yahoo!

So, in your case, you will get the shares of buyer company. But how many shares you get depends on the swap ratio declared by the buyer company.