If i purchase some stock in Sirius Satellite and they merge with XM will my stocks transfer also??

Answer 1

Stocks never "transfer", the buying company in a buyout makes an offer, if it's accepted then whatever that offer is is what happens.

That offer can come in many different flavors for stockholders of the bought out company:
1) current stockholders get 1 stock in the new company for each stock they used to have in the old company.
2) current stockholders get a fraction of a stock in the new company for each share they had in the old.
3) current stockholders get a fraction of a stock and an amount of cash for each stock they hold in the old company.
4) current stockholders get bought out in cash without any stock in the new company given to them.(usually you get less than market value)
5) current stockholders get jack.

It's almost never #5, what usually happens is they get stock in the new company, but since there's more stock out there the stock value drops, but almost always in a buyout the stock shortly rebounds to more than what the shareholders original stock value was likely due to corporate synergies.

Answer 2

I haven't had a chance yet to read about what XM is offering, if it's public yet, so I will give you two possibilities.

1) A cash offer. You will receive cash for your Sirius stocks, and will have to then buy XM stock if you want it.

2) A stock offer. You will receive X shares of XM stock for each share of Sirius stock you own. You will then own XM stock and can sell or keep it as you wish.

Answer 3

Since Sirius will be the new parent company, your Sirius stock would remain unaffected.

Once the deal is finalized, XM stocks will be transferred into Sirius stocks. 1 share of XM will be turned into approximate 4.6 shares of Sirius.

Answer 4

nope only if you buy shares of xm

Answer 5

yes

Answer 6

yes dont worry ur safe