Do you buy a stock before or after a buy out?

Question

I have lots of stocks in companies. but when i hear about a buy out or merger, is it best to buy before or after? or sell?

Answer 1

You buy it before is usually best. You do it on speculation.then when the news hits it depends on how much the buy out is for. If the offer is greater than the current price then you can hold until it is close to the current price then sell. If the offer is only a little above current price then I'd say it's not worth holding and to sell immediately.

Answer 2

If there is a cash buy out, it will automatically pay you so you
save commission money. If it is a stock merger , the acquirer company is a growth company , it may be better to wait and sell
after wards. When the word is out , a company is is being bought, the price goes up so it is not worthy to buy .

Answer 3

If one of your stocks is bought out, the price will go up. Sell it and make money. It's hard to buy before it goes up. We don't know which stock will be bought beforehand. The day the news is out about the merger, the stock is up already. I wouldn't buy it then, it may not go up higher or sometimes they change their minds about merging. They are very secretive before they announce the news, it's iniside information.

Answer 4

Usually best to buy before an offer is made to buy the company as offer will often be higher than market stock price.

Answer 5

you could no longer purchase on the weekend. Get some greater documents, you will detect a flaw on your argument. If it have been actual, each and every physique might purchase and the industry might anticpate the determining to purchase and it would advance right into a sell. like the chap who walks previous the £10 notice interior the line:"If it have been fairly there somebody might have picked it up already"