Comments on: What happens if I buy stock in a company and then it is bought out by another company? http://www.guerillastocktrading.com/stock-trading/what-happens-if-i-buy-stock-in-a-company-and-then-it-is-bought-out-by-another-company/ Stock Trading on the Front Lines Sat, 18 Apr 2009 08:39:59 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: BrashBash http://www.guerillastocktrading.com/stock-trading/what-happens-if-i-buy-stock-in-a-company-and-then-it-is-bought-out-by-another-company/comment-page-1/#comment-83 BrashBash Sat, 18 Apr 2009 08:39:59 +0000 http://www.guerillastocktrading.com/stock-trading/what-happens-if-i-buy-stock-in-a-company-and-then-it-is-bought-out-by-another-company#comment-83 The shareholders are the real owners of any company. If the company is bought by another company then you will get paid if you want to sell the shares. You are usually paid a really good price to. The only time you are not is if the security you hold is traded on the pink sheets or OTC markets. This is why you should NEVER buy securities that are traded on the pink sheets or the OTC markets. I have personally been scammed by companies traded in these markets. The most recent one that comes to mind if PLNI Plasticon. It was a total con. Fake PRs, fake SEC reports, fake everything. The owner will likely go to jail. Now if the company goes bankrupt, that means your share will likely become worthless. But not always. There are different types of bankruptcy and some are restructuring so that the company emerges stronger than it was before. Most often though, the bankruptcy court will approve a new issue of shares under a new ticker symbol and then the company will offer an exchange of something like 2 of your old shares for every 1 of your new shares. The shareholders are the real owners of any company. If the company is bought by another company then you will get paid if you want to sell the shares. You are usually paid a really good price to. The only time you are not is if the security you hold is traded on the pink sheets or OTC markets. This is why you should NEVER buy securities that are traded on the pink sheets or the OTC markets. I have personally been scammed by companies traded in these markets. The most recent one that comes to mind if PLNI Plasticon. It was a total con. Fake PRs, fake SEC reports, fake everything. The owner will likely go to jail.

Now if the company goes bankrupt, that means your share will likely become worthless. But not always. There are different types of bankruptcy and some are restructuring so that the company emerges stronger than it was before. Most often though, the bankruptcy court will approve a new issue of shares under a new ticker symbol and then the company will offer an exchange of something like 2 of your old shares for every 1 of your new shares.

]]> By: MoneyMan http://www.guerillastocktrading.com/stock-trading/what-happens-if-i-buy-stock-in-a-company-and-then-it-is-bought-out-by-another-company/comment-page-1/#comment-81 MoneyMan Sat, 18 Apr 2009 07:47:59 +0000 http://www.guerillastocktrading.com/stock-trading/what-happens-if-i-buy-stock-in-a-company-and-then-it-is-bought-out-by-another-company#comment-81 Stock bought buy another should give you stock or cash or both. Bankruptcy by the buying bank would cause that stock to become worthless... Stock bought buy another should give you stock or cash or both.

Bankruptcy by the buying bank would cause that stock to become worthless…

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