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Old 04-19-08, 10:05 AM
Kimi706 Kimi706 is offline
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What Happens to stock when...

I am new to stocks and have a question..

Company A could possibly be bought by Company B. They are both publicly traded companies. What happens to Company A's stock?

My thought is if i bought company A's stock it would be turned into company B's stock, but that would seem to easy.

Any help is appreciated!
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Old 04-19-08, 06:39 PM
Fredledingue Fredledingue is offline
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It's easy indeed: You receive stocks from Company B, automaticaly. You have nothing to do or to worry about.
You will also recive cash for a fractional share if the number of Co. B stock is not round.
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