Stocks of one company that buys a company and the stocks of the company that has been purchased...?

Question

When one company buys another company.....

What happens to the stock of the company that purchased the other company.

What happens to the stock of the company that was purchased?

If you can give me any other info on stocks that would be great. Im trying to work on a paper that is due monday.

Answer 1

www.morningstar.com might have some stuff.
other then that... im a stock retard and i got a D in Econ. when i gratuated haha

Answer 2

Its a sprint doubtful whether the corporate being offered is being offered for inventory or for money. If the objective company is being offered for money, its inventory stops buying and promoting as of the merger date. offered a transaction does not have minority rights (they often do no longer), all shareholders that have tendered their shares will get carry of the acquisition value. At that factor the objective company ceases to exist. If no longer all shares have been redeemed, those outstanding can nonetheless be redeemed with the buyer for the supply value. they don't have the different fee. If vendors of the objective company are being presented shares, then the shares of the objective company are retired and shares of the buying company are issued in its place. often formerly the main suitable transaction happens the marketplace has adjusted the inventory value of the offering company to evaluate the extra money flow from the acquisition... and the dilutive consequence of issuing extra shares. as a result, there is little (if any) adjustment on the truly close of the deal in a inventory replace.

Answer 3

Due on Monday?

Add the value of both companys, subtract the cumulative and inherited debt, and the difference is absorbed by the purchasing company via a normally lower stock price.

Answer 4

It depends!

First, How was the deal structured? Was it a stock for stock tax free exchange?

Was it a complete buyout or partial controlling interest?
How was it to be paid for(the method of payment)?
Cash, cash and securities, securities, sale of bonds to
finance a cash buyout.

Accounting wise look up Pooling versus Purchase Methods.
Good will is created under one but not the other.

If you want to know the immediate short term market impacts to acquirers(known as bidders) and acquirees(know as Targets)
you need to look at the event study results, Cumulative Average Residual technique(CAR studies.) Biiders loose by over bidding to achieve success while targets win by receiving premium prices.

Answer 5

dont buy stocks. they can be quite lucrative and bring in a lot of money but if the company is not successful then ur guan lose all of ur money forever and ull be miserable for the rest of ur life andthen ur guna try to committ suicide and then fail and then try it many more times and then finakly succeed and then ur guna die..... a long slow painful death........... puahhaahahhahhaPUAHAHHAHAHA PAUHAHAAHAHAHAAHA

Answer 6

good luck