If you own stock in a company and it merges with another company under a new name what happens to your stock?

Answer 1

You get stock in the new company. If you own stock in Benbow Widget Company and it merges with River Widget Company and becomes Benbow River Widget Company you now own stock in Benbow River Widget Company. If the company you own stock in goes out of business you are stuck. If the company you own stock is sold to a new company you still own the stock.

Answer 2

Generally the details of the merger will dictate what happens to stock; usually something along the lines of for every share of X company you own, you'll get some number of Y company shares. If that results in a fractional share, they'll usually send out money equal to that fractional share. I'd check the websites of your X and Y companies and look at their press releases, it should be in there somewhere.

Answer 3

Just now AT&T has taken over Bell South and created the largest communication company is US. Check their websites especially that of AT&T you are bound to get the answer. Cheerio.