Forum Thread

What happens to my stocks when a company gets acquired ?

addtd2sd 1,413 320 July 23, 2016 at 08:35 PM
Deal
Score
0
1,954 Views

Thread Details

I had some stocks with a company that was recently acquired by a big company. I received a mail from Robinhood (used their service to purchase x number of stocks) but I wasn't able to respond to their mail in a timely manner (past due now).

What happens now to my stocks now ? Will my stocks get automatically converted to the parent company's stock with the current market rate ? Since I didn't reply to their mail with my decision on time, will they sell my stocks at the acquired rate/share to the parent company ?

4 Comments

1

Sign up for a Slickdeals account to remove this ad.

Joined Jun 2005
Let Sleeping Dogs Lie
5,844 Posts
2,388 Reputation
Pro
#2
whatever the agreed upon rate was that is what you now own. So if you had 100 shares of A and B purchased them and the rate was 2 for 1 then you would have 200 shares of B or whatever.
Reply Helpful Comment? 2 0
#3
It depends on the terms of the sale. One of three things happened:
1. You got stock in the acquiring company at the rate stated in the documents to which you did not respond
2. You got cash at the rate stated in the documents to which you did not respond
3. You got both cash and stock in the acquiring company at the rate stated in the documents to which you did not respond
Sorry, I couldn't resist repeating the last part of each option above Smilie It really does depend on the purchase agreement; Sometimes the offer is such that all stockholders get the same thing. Other times, the offer has contingencies, and what you get depends on how many people request cash and/or stocks.

I've experienced all of the above
Reply Helpful Comment? 2 0
Joined Sep 2006
L6: Expert
1,413 Posts
320 Reputation
Original Poster
#4
cool. thanks all.
Reply Helpful Comment? 0 0
Joined Oct 2009
If It's Free, It's for Me
1,482 Posts
347 Reputation
#5
I use a Bloomberg terminal at work, if you let us know the merger or acquisition that took place, I can look up the default option to the investor if you didn't elect which proceeds to receive.
Reply Helpful Comment? 0 0
Page 1 of 1
1
Join the Conversation
Add a Comment
 
Copyright 1999 - 2016. Slickdeals, LLC. All Rights Reserved. Copyright / Infringement Policy  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)  •  Interest-Based Ads
Link Copied to Clipboard