When news is released of a merger & acquisiton, if a company announces its being acquired, or if a company announces a sale of some assets, then this usually causes the price of a stock to skyrocket within the day. experienced traders, what do you think of buying right as news of these mergers is released and then selling shortly after the price climbs?
2007-02-12 18:55:50 · 1 answers · asked by rk88 1 in Business & Finance ➔ Investing
There are as many different ways to trade M&As as there are different types of M&As.
The best thing to do is look at examples, an ongoing one is the london stock exchange, various firms have been trying to buy out the lse most notably the numerous bids from NASDAQ. This has sent LSEs shares rocketing over the past few years, this is an M&A deal where you didn't have to react within the day to make money but there are others where can miss the boat in a matter of seconds.
To make educated M&A trades you need to become an expert on every deal. If we take LSE above that is one example of the recent consolidation in this sector, the continued bids from NASDAQ and subsequent rejections from LSE were all quite predictable.
2007-02-12 22:31:13 · answer #1 · answered by tr4d3r_2005 2 · 0⤊ 0⤋