2007-03-13 10:20:34 · 6 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
It is, but you should have received a notification to sell your shares to the company buying the outstanding shares. If a company is public and had shares outstanding, it has to buy up or make an offer to buy its share holders before it can become a private company wholly owned by another person or another company. They can't just own 50.1% of the company and declare by edict that the other 49.9% of the share holders to be crap out of luck. If you have your shares held at a broker, it will be sold to the buyer when the offer is on the table. The brokerages know that if you don't offer up your shares when the deal is already decided, you will get nothing for the shares instead. So they will sell it automatically. That's what my broker did when I held shares in a public company that became wholly owned subsidiary again, essentially turning it from public to a private company. If you held the shares in your name, the transfer agent should have informed you that the deal is taking place. You should sell it. If you refused, you won't hold up the deal. You will just get nothing for your shares. You won't be able to sell it in the stock exchange later either because the stock for that company has stopped trading. So if the majority of the shareholders have approved the plan to take the company private or to be bought out, you should get a notice to sell your shares back to the company, and you should do so.
2007-03-13 10:42:15 · answer #1 · answered by Elisa 4 · 0⤊ 0⤋
Investing in the stock market is legalized gambling You can win some and you can loose some. Some of these companies make their future sound great but turn around and change the rose to red ink. The health of the stock market depends on every little ripple in the world.
2007-03-13 17:45:36 · answer #2 · answered by BekindtoAnimals22 7 · 1⤊ 0⤋
Happens all the time with bankruptcy. The company reorganizes, and stockholders stock is worthless. Corporations are so highly regarded in this country, they do this over and over.
2007-03-13 17:26:36 · answer #3 · answered by Middleclassandnotquiet 6 · 1⤊ 0⤋
Sure. It had to be approved the the stock holders.
2007-03-13 17:24:38 · answer #4 · answered by Barkley Hound 7 · 0⤊ 1⤋
Probably. Businesses are allowed to do pretty much everything they want, whether it's good for humans or not. Only suckers trust them.
2007-03-13 17:25:41 · answer #5 · answered by catrionn 6 · 0⤊ 0⤋
Fraid so.
2007-03-13 17:29:08 · answer #6 · answered by David H 6 · 1⤊ 0⤋