What happens to your shares in the small company?
2007-01-02 02:10:59 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
That depends on the terms of the buyout. You would more than likely either get cash, or shares in the new company.
2007-01-02 02:20:36 · answer #1 · answered by jeepdrivr 4 · 1⤊ 1⤋
Several things can happen.
The new company can buy the old shares, issue stock in the new company, or simply cancel the old companys shares.
The last is a real rip off but it has happened.
Years ago Phillip Morris bought out a food company (either general foods or general mills, I dont remember which) and they paid off the old stock at the 5 year high.
2007-01-02 10:26:36 · answer #2 · answered by mslider2 6 · 0⤊ 0⤋
Large Companies do not buy public companies with a share price of $2.00 or less.
2007-01-02 14:00:48 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Usually the stock convert! Woo Hoo! This is really the reason people invest in small company shares, hoping for that buy out!
I hope you had a bunch!
2007-01-02 10:48:36 · answer #4 · answered by Landlord 7 · 2⤊ 0⤋
Usually your shares will be exchanged for shares of the new company. Most of the time you will recieve a premium for your shares. If you had $10,000 worth of stock, the merger could result in your new stock to increase in value to $11,000 or $12,000.
Party On!!!
2007-01-02 13:19:57 · answer #5 · answered by MR MONEY 3 · 0⤊ 0⤋