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.
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