What Happens if You Own a Stock and the Company Gets Bought?

The business world’s version of “retail therapy” involves shopping for whole other companies, and if you happen to own shares in a company targeted for acquisition, you’ll probably be fairly happy about it. Buyers as a rule, have to offer something of a premium to get these deals done. But buyout bids of whatever size frequently offer shareholders a choice: Cash, or stock in the acquirer. (Not to mention that one can always sell prior to a deal’s closing day, take the premium, and move on.)

In this segment of the MarketFoolery podcast, a listener is seeking some advice on that decision: Is there a general rule about which path is better? Host Chris Hill and senior analyst Emily Flippen weigh the pros and cons of each course.
————————————————————————
Subscribe to The Motley Fool’s YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts

Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
https://www.facebook.com/themotleyfool
Follow The Motley Fool on Twitter:

Category: News
About The Author
-

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>