2007-06-15 04:22:36 · 6 answers · asked by italian499 1 in Business & Finance ➔ Investing
That's all negotiable, but in the end, Company B owns it. Assuming that Company A is financially sound, this is usually a good thing for the stockholders of Company A. In order for Company B to get control of company A, they have to buy the outstanding shares of that company. They have to offer a price higher than what the stock is currently listed at, or else no one would sell to them. If the takeover is hostile, then the premium they have to offer will be even higher.
Sometimes they will trade equivalent shares, such as getting 2 shares of Company B stock, for each share of Company A that you own. If that's the case, then you have to see what kind of financial shape Company B is in, to see if your new shares are going to be worth anything. Hopefully, the Directors of Company A have evaluated all of this before the buy was consumated.
2007-06-15 04:35:25 · answer #1 · answered by righteousjohnson 7 · 1⤊ 2⤋
Usually, the Company A stock will be converted to Company B stock.
2007-06-15 04:25:58 · answer #2 · answered by jim 6 · 0⤊ 0⤋
Your stocks are converted to stocks in the new company at a rate that is fair. Happend to me once. I had 200 shares of company A and they were converted to 50 shares of company B (they were of greater value on the stock market)
2007-06-15 04:27:07 · answer #3 · answered by Greyfoxx 2 · 0⤊ 0⤋
3 things can happen, of which you have no choice about choosing.
1) Company A's stock is cancelled and you get company B's stock (usually of equal or greater value)
2) Company A's stock is cancelled and you get cash or
3) Company A's stock is cancelled and you get a mix of cash and Company B's stock.
2007-06-15 05:02:30 · answer #4 · answered by gosh137 6 · 1⤊ 0⤋
yeah yet the two the corporation had to spend assorted money to purchase the corporation which offsets the ease interior the cost of the hot corporation or they pay with inventory, which might shrink the % possession of your latest inventory, yet boost the customary fairness - so as that cancels out additionally - the was hoping for earnings interior the long-term is that the corporation it fairly is bought is rewarding and which will upload value to all of us who owns inventory in teh companies
2016-10-17 08:53:19 · answer #5 · answered by estiven 4 · 0⤊ 0⤋
You get your money back or shares in the company B or a combination of both.
2007-06-16 13:38:42 · answer #6 · answered by Anonymous · 0⤊ 1⤋