What will happen to microsoft and yahoo's stocks if microsoft does or doesn't buy yahoo and why?

Question

i know it could go ethier way but i am thinking about buying stock from them

Answer 1

From the way that the stocks have moved during the unfolding of events related to acquisition talks, the market seems to like the deal for Yahoo (obviously largely based on the fact that there were news stories about the price at which Yahoo would be acquired, which was higher than the price pre-talks), and didn't like the deal for Microsoft (as its stock sank with the news of their possible acquisition and then rose when it looked like the deal was off).

Answer 2

The stock becomes less per share and is bought up so fast your head will spin.. It's called a Bear Market. It is then, going to go up in value and the smart ones who are in it for a quick buck will sell at a higher price than they bought it for. Long term investors will buy it before it get's too high and sit on their investment for a while and sell only when the stock peaks.

Answer 3

If you've noticed, Yahoo stock has gone up quite a bit lately, as Microsoft was offering a price (premium) well above the trading price.  It doesn't ALWAYS happen this way, but in an acquisition, it is usually the company being acquired who goes up, and the acquirer going down (albeit slightly).