Stock holding or selling?

Question

When holding stock and it goes into acquistion to another company are you forced to cash the stock in?

Answer 1

Depends on the way the deal is structured. Some are cash buy-outs (which there have been a lot these days because of pricate equity). Others are stock for stock exchanges. The stock exchanges are usually tax-free exchanges, so there is not tax consequence from accepting the new shares. You can always sell shares before the exchange date if you do not want to own the new company, but this would cause a tax event.

Answer 2

only if other co has 50%