Stock/Invest Question

[yjumpinoz 0]

I am stuck with a lot of stock in a company that is currently for sale. It is a large company and it is making money now. What happens to the stock when the company is sold? Typically does it go up or down? Should I bail now or hang in there?

[Zeppo 0]

The value of the company for sale typically goes up, while the value of the buying company goes down.

Has an offer yet been made?

If so, is the nature of the deal based on a stock (2 for 1 maybe) trade or is a cash deal.

Each of these can have an impact on the value of the company being sold.

What goes up, must come DOWN!!!

[playgroundguy 0]

HOLD ON TO IT!

Good, Better, Best, never let it rest 'till your good better and your better best

[2fat2fly 0]

Give it to me, that way you won't be stressed about making the right call, and I won't be stressed because either way, it's free money. See, I'm a natural problem solver

I am not the man. But the man knows my name...and he's worried

[NoRules 0]

Quote

The value of the company for sale typically goes up, while the value of the buying company goes down.

Has an offer yet been made?

If so, is the nature of the deal based on a stock (2 for 1 maybe) trade or is a cash deal.

Each of these can have an impact on the value of the company being sold.

What he said. Also, sometimes they give you choices, like you can choose cash OR stock (or a combination). A lot of times these aren't equal in value and will default to the one worth less unless you specify so be sure to follow the deal. PM me if you have any questions!

~ * Life Has No Rules * ~

[yjumpinoz 0]

Thanks all. Not sure when the transaction will happen. It is in negotiation.