What if a company in which I have some shares, gets acquired by another company?

Question

What will happen to my shares if my company gets acquired by another company. Also what if the company gets closed. Will I get my money back ?

Answer 1

you now own shares of the new company. Or you can sell and get your money back

Answer 2

Before the acquisition, you as a minority shareholder will be given the option to sell off your shares to the acquiring comoany at a certain price. You can use thisroute and exit that company.

Else, you may choose to hold the shares of the existing company and get them swaped with the shares of the acruiriing company and then sell them off in the market. Remember, in every acquisition deal, you get the oppurtunity to exit the company before the acquisition actually happens. If you are not sure about the prospect of the adquired entity, you better get out!!!

Answer 3

If your company gets acquired, the terms of the acquisition may be either that the shareholders of your company get paid cash, or they get their shares exchanged for shares in the acquiring company. So, you as a shareholder in the acquired company either get a certain number of dollars per share you own when the aquisition took place, or, you get a certain number of shares in the acquiring company.

If your shares are at your stock broker's, held for you in 'street name', your broker will send you news of the acquisition and you will receive either cash or stock in the acquiring company, and the shares in your existing (acquired) company will cease to be valid after you receive the cash or new stock.

If your shares are owned by you in certificate form, you will receive news of the acquisition at the appropriate time, along with instructions to turn in your shares for either the cash or the shares in the new company.

If your company gets closed, you will either receive some money per share, if the company had net equity when operations ceased, or you will receive nothing, if the company's liabilities exceeded its assets (that is, if it was bankrupt).