Home | Links | Contact Us | Bookmark
Financial Forum Search :
   Homepage      News      Financial Topics     Finance Directories      Financial Forum      Dictionary  
Financial Forum    Investing
Finance Discussion Forum

 How can a person be filthy rich by the age of 26? any answers...?
...


 How does one become a stock market trader?
I work full time in a reasonably well paid job, but I have always had an interest in making money on the stock market. The problem is I know nothing about it. I have seen loads of software available ...


 Bought Apple & Google at highs..sell or hold?
Woe is me. I finally got in to market and bought Google and Apple at their highs. Sell and lick my wounds or hold???...


 Buy car with or without loan?
Bare with me here, assuming:

-I have 10k in my savings account.

-I want to buy a car worth 10k.

-I can take out a car loan worth 10k and pay 7 percent interest per ...


 What is a good S&P 500 index fund?
ALso, a good DJIA index fund?
Thanks!...


 How can I find an experienced stock investor that is willing to assist me in buying and selling good stocks?
I currently have $50,000 and I want it to grow to $500,000 in a few years by aggressively buying and selling the right stocks. I'm willing to pay an experienced investor 25% of my profits. They ...


 What is procedure to get the credit card?
About the credit ...


 I came accross some old stock certificates from the early 20's, Can I research them to see if they are valid?
My Fiancee's Father recently passed away and we had to pack his entire house up. We found some stock certificates from the early 1920's and we were wondering how or where we can go or do to ...


 Can someone suggest a good book for me?
Is there any book like "Banking in India" for Dummies or "Mutual funds" for Dummies or "Shares" for Dummies, etc?
Mutual funds, Stock Exchange, Shares, Trading ...


 Forex Brokers ?
Does anyone know what the steps are to starting a Forex broking company ?...


 Why would the closing price change?
Lion Gate Entertainment (LGF) closed at 10.01 today and I just checked it again at 4:30PM, the closing price changed to 10.65? So strange.
Additional Details
i was looking at the real ...


 Can anybody explain me share market of india in brief?
...


 What's the worst investment you've ever had?
I mean a real investment, not things like cars....


 Whats going on with the stock market right now?
Have been reading and researching about stock market this summer, and am having a hard time finding out why exactly the market has been so unstable lately?...


 Paper or coin?
...


 Is GE a good stock to buy now?
why or why not?...


 If you bought more than 51% of the common stock on the market, does that mean you have the owner/voting rights
This may happen on stock with naked shares. Sometimes, it went down so low that you can throw in a few thousands and buy the company too! can i?...


 I don't have much money to invest, what kind of gold coins should I start with?
I would like to start acquiring gold coins such as the Swiss 20 Francs or gold bars etc. but not something that the government could confiscate (ie us coins after 1933). What would be a good online ...


 17 year old with $5,000 to invest. what should i be investing in at this young age, with tons of time?
i have set up an etrade acount, should i be investing in mutual funds, stocks? buying and holding? thanks for ...


 What stock funds should I invest in currently?
I want the best return I can get in a 3-5 year period. I was looking at Schwab Health Care SWHFX. Sound like a good bet? I would like your advice on any stock funds that would be successful....



Sarah C
What happens if you buy stock in a company, then they sell to another company, what happens to the stock?
                     
 




Stan W
When one company buys another company they make a deal.

The details of the deal talk about how much money is involved and what happens with the old stock.

Holders of the old stock are given some fraction or ratio of the new stock. Sometimes it's a cash deal and the old stock holders get some cash.

How much is all part of the deal that was negotiated by the two companies - you have no say (unless you are a major shareholder).

Part of the deal states the date this all goes into effect.

All the paper work is handled by one of the brokerage houses and your account will be updated on time and without error.

A stock for stock deal this does not count as a SALE, and is not a capital gain for which you owe income taxes.
However, a stock for cash deal does count as a SALE and you will be hit owing income taxes.

You can get more info at the companies INVESTOR RELATION web site or call yoru broker.


Gerald
Ya get stock from the new company --


jimmyp
Rating
It depends on the transaction. Your shares will be converted into a mixture of cash and the acquirer's stock. For example, you might receive $10 cash and 1.5 shares in the new company for each share you have. Sometimes, you are cashed out completely and automatically. (This happened when Chiron was acquired for me) If you receive cash, it will become a taxable event for you. If you receive stock, that portion will not be a taxable event.

The shares that the acquiring company purchases are typically just retired.

If an acquisition is announced, you can also just sell your stock on the open market prior to the close of the acquisition. You probably will not recieve the full price, but this is one way to guarantee that you will not own the acquirer's stock if that is a consideration for you.


tommydmc
All of the answers so far are really good.

But one important thing should be noted. When you own stock in a company, you own part of the friggen' company. An aquiring company needs to accumulate a sufficiently large position in the target to actually take over. You should sell for a big profit dude!


Tom H
Rating
I've not yet had the actual experience, but I believe the following is true:

If the "buyout" is an all-cash deal, then your stock will disappear from your brokerage account & be replaced by the appropriate amount of cash.

Or the deal could be part cash & part stocks. The stocks in this case would be the stock of the buyer company. Then your original stocks are replaced with some cash and some stock shares of the buyer company.

There is the all-stock buyout too.


compradore
You still own it and unless the new buyer decides to apply the issue for delisting, you can still trade it. This isn't a simple as stated, however. I am not too familiar with US SEC regulations (I assume you are in the US). But is buy-outs like these, they normally require the buyer to make what they call a tender-offer to the minority shareholders. You may opt to sell the new owners your share, or hold on to it. Just make sure that if you decide on the latter, and the new owners issues new shares in place of the old ones (as they invariably would if the company changes substantially), you are not left out holding the old shares. The dates for exchanging these shares are mandated to be disclosed to the shareholders and the public.


brian s
You could get stock in the new company or the new owners could make an offer to buy your stock from you.


 Enter Your Message or Comment


User Name:  
User Email:   
Post a comment:







Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.024
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy