s to the money in that stock? This right now is for the purpose of tracking ficticious. But I noticed that WFR lost 98% today. Do I now own stock in the takeover company?
2007-03-22 02:51:25 · 1 answers · asked by Anonymous in Business & Finance ➔ Investing
It depends on the terms of the buyout arrangement. If the acquiring compnay pays for the acquired company with stock, then you will receive stock in the acquiring company. If they pay cash, then you will get cash. Either way, the amount that you get per share of stock that you hold will be detemrined and publicized well in advance. As the zero hour approaches, the stock price will converge towards the deal price so that at the time the deal is closed the stock price is worth exactly what the deal price is.
There can be some fluctuation between the time the deal is announced and the time it actually occurs because people will be betting on whether or not the deal will actually go through.
2007-03-22 03:59:09 · answer #1 · answered by BosCFA 5 · 0⤊ 0⤋