Hello all,What happens to ones stock in Company A when Company A is bought out by Company B?-etan
It depends on the terms of the buyout. Generally the shares of company A stock are convertd to shares of Comapny B stock at a rate of conversion that was negotiated as part of the buyout. The rate of conversion is usually set to give a permium to the holders of company A stock above market conditions at the buyout time in order to incentivize them to sell their stock.
To elaborate further, the company which stock you own should send you a lot of information about the sale, what to do with your stock, how much it will be worth in the new company, and other details. If your stock is held by your broker, he will get the information, and send it to you.
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