can i do anything or do i just have to accept the loss?
2006-09-27 08:58:09 · 8 answers · asked by w-man 1 in Business & Finance ➔ Investing
(the company is getting bought out in an all cash deal) so am i stuck with the loss?
2006-09-27 09:11:03 · update #1
Yes, that's pretty much the way it works.
You buy at $35, it drops to $25, so you're down $10.
However, an offer comes in at $30 for the company. You'll either sell your shares at $30 ($5 more than it was at, but $5 less than you paid).
If you don't sell, it usually gets converted to equivalent shares of the buying company.
Always be sure to do your research on your stocks and have a plan to sell before you buy stock in the future.
Knowing your exits ahead of time is a key to success!
2006-09-27 09:12:18 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 0⤋
I am not totally sure of your question, but if your company is bought out lock stock and barrel by another company, you will either get cash or stock in the new company valued at the closing price. If the buyer is making an offer for stock in your company, you are not required to sell. If they get enough stock, however they can then force you to sell.
The truth is that you do have to sell in the end and sometimes the new stock does better.
2006-09-27 09:02:28 · answer #2 · answered by united9198 7 · 0⤊ 0⤋
If you're allowed to hold on to your stock, it will be converted to shares of stock in the new parent company. I didn't know they could force you to sell, that's news to me.
2006-09-27 09:08:27 · answer #3 · answered by rainfingers 4 · 0⤊ 1⤋
Yup, that is the risk that is part of investing in the stock market.
2006-09-27 09:06:11 · answer #4 · answered by John J 6 · 0⤊ 0⤋
read tips on investing and stocks to better help you on this site
2006-09-27 09:33:44 · answer #5 · answered by elo 2 · 0⤊ 0⤋
it is better to encash your stock before anything happens--------it is meer waste of catching leaves after you rhands are burned in any fire accident
2006-09-27 09:09:55 · answer #6 · answered by brook 2 · 0⤊ 0⤋
your unrealized loss becomes realized.
2006-09-27 09:25:15 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes, you are stuck.
2006-09-27 09:00:12 · answer #8 · answered by Anonymous · 1⤊ 0⤋