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a stocks value?
What happens to a companies stock value when they are bought out by a larger company? Do they become worthless or take a hit in value or what? Thank you for your response.
1 Answer
- Philip FanaraLv 47 years agoFavorite Answer
The purchasing company buys all shares at a specified price. Once the deal is approved by the shareholders, trading will be frozen, all shares will be removed from shareholder brokerage accounts, and all shareholders will be credited the proceeds from the sale (shares held * selling price).
Source(s): 10+ years investment experience; corporate finance/accounting experience; author of "The Stock Market Outsider: Becoming a Billionaire"