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This is the first acquisition I have had stocks for, where can I learn more about what happens for me?

• make3 7y ago
  don't you just own stocks that are worth more?
• ak217 7y ago
  I don't know of any resources for this, though I'm sure there are some good pages on this that are googlable. Here is my experience, having owned a few tiny positions in stocks that went through a merger. - The moment the merger terms became public, your stock got the merger priced in by the market makers - minus a small discount representing the chance that the merger won't go through. Now it's going to trade mostly pegged to the parent stock, as if the merger had already happened (or flatline, if the buyout was all in cash). To keep shareholders happy, mergers usually happen at a 20-50% bonus over the purchased company's stock price, so this is a great event for you - the parent company just boosted your position. - Your broker will automatically execute the merger transaction for you. The stock will disappear from your account, and a commensurate amount of cash and/or parent company stock will re-appear. This should show up under "Corporate actions" in your brokerage account or similar. - I'm not aware of anything special that will happen otherwise. The merger closing (usually in 6 months or so) will represent the removal of uncertainty, which will give your position a bump, but that bump is usually tiny. So you can sell if you have reason to believe the deal won't go through (watch out for short term cap gains), or hold, if you like the parent company.
  • nscalf 7y ago
    This was really helpful, thank you! As far as short term capital gains, the stock recently cut in half due to an awful quarter—-I think with the bump from this news I’m still down 20%. But it’s okay, glad to have recouped some losses.
• projektfu 7y ago
  Most public companies have an Investor Relations link on their homepages.