What happens to my stock in a company when the company is bought/ taken over?

Question

Goes down? Up? Erased?

Answer 1

If a new company takes it over you will be given an equal share equivelant from the new company, assumeing that the company
A) is publicly traded
B) did not buyout all shares of stock as a prerequesit of buying the company, in which case you will be notified by mail at least 30 days prior to the sale as to how much you will be paid.

In any case you will be given prior notice to the outcome since you are a shareholder. if the price goes up or down is the domain of the stick exchange and not the new owner.

Answer 2

Not erased. They usually replace your stock with the new stock, or buy you out, or do partial stock and partial cash.