I bought stock in a bank that was really cheap. The bank was then bought buy another, larger bank. This larger bank's stock is more expensive. Will my stock be reset to match the higher price of this other stock? How does this work? Thanks in advance for your help.
Read the copy of the merger agreement that is provided to you as a share holder. This is mailed to all shareholders of the old company. Most often what happens is that you will get pro-rated shares in the new, larger bank. The first page in the merger agreement usually has the ratio under which the old shares are converted to the new shares.
As an example, let's say you owned 600 shares of the acquired bank. The merger agreeement specifies the shares would be converted at a 3 to 1 ratio. You then will receive 200 shares of the new bank and your old shares will be taken away. If the purchase by the large bank is a "Cash Merger," you will receive a check based on how much the acquiring bank agreed to pay to the shareholders of the acquired bank.
I bought stock in a bank that was really cheap. The bank was then bought buy another, larger bank. This larger bank's stock is more expensive. Will my stock be reset to match the higher price of this other stock? How does this work? Thanks in advance for your help.
Read the copy of the merger agreement that is provided to you as a share holder. This is mailed to all shareholders of the old company. Most often what happens is that you will get pro-rated shares in the new, larger bank. The first page in the merger agreement usually has the ratio under which the old shares are converted to the new shares.
As an example, let's say you owned 600 shares of the acquired bank. The merger agreeement specifies the shares would be converted at a 3 to 1 ratio. You then will receive 200 shares of the new bank and your old shares will be taken away. If the purchase by the large bank is a "Cash Merger," you will receive a check based on how much the acquiring bank agreed to pay to the shareholders of the acquired bank.
I bought stock in a bank that was really cheap. The bank was then bought buy another, larger bank. This larger bank's stock is more expensive. Will my stock be reset to match the higher price of this other stock? How does this work? Thanks in advance for your help.
Read the copy of the merger agreement that is provided to you as a share holder. This is mailed to all shareholders of the old company. Most often what happens is that you will get pro-rated shares in the new, larger bank. The first page in the merger agreement usually has the ratio under which the old shares are converted to the new shares.
As an example, let's say you owned 600 shares of the acquired bank. The merger agreeement specifies the shares would be converted at a 3 to 1 ratio. You then will receive 200 shares of the new bank and your old shares will be taken away. If the purchase by the large bank is a "Cash Merger," you will receive a check based on how much the acquiring bank agreed to pay to the shareholders of the acquired bank.
Stocks Above I Currently Hold In My Own Trading Account: Long LIFE
Guerilla Trader Quote
“A person with good self-discipline but a poor trading method will outperform a person with poor self-discipline but the best trading method currently available.” by Larry Levin Emotion Free Trading
Copyright 2009-2011 GuerillaStockTrading.com All rights reserved. No part or article on this website may be copied or duplicated without written consent from GuerillaStockTrading.com and Confab Publishing. Disclaimer: This Web site is designed to provide accurate and authoritative information on the subject of personal finances. It is provided with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services by providing this Web site. The authors and publisher shall not be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential or other damages. As each individual situation is unique, questions relevant to personal finances and specific to the individual should be addressed to an appropriate professional to ensure that the situation has been carefully and appropriately evaluated. This blog is for information and entertainment purposes only. Under no circumstances does this information represent a recommendation to buy or sell securities or any other type of investment instruments. See a licensed broker for investment advice.
Guerilla Stock Trading University