What happens when a company is taken over?

joebhoy

Registered User
Messages
9
Hi everyone.


During the bad days I stuck some money in a company that isn't doing to bad atm. Thing is there's alot of talk about this company been taken over. If it was taken over what happens with my shares???
 
You get paid the price in take over contract. Usually it is a good thing for shareholder.
 
It all depends on what's agreed, and usually minority shareholders get the deal the majority shareholders negotiate - shares in the newly formed entity in exchange for old shares, shares plus some cash, etc.