What Happens When a Company You Own Stock in is Bought?

Mergers and acquisitions happen all the time on Wall Street, and usually, they’re not a bad deal for shareholders in the target companies. After all, executives and boards of directors aren’t likely to sell their businesses unless they get a premium for it. But how does it all actually play out for retail investors?
In this segment of the Motley Fool Answers podcast, host Alison Southwick and her special guests -- Motley Fool senior analyst Jason Moser, and Ross Anderson, a certified financial planner at Motley Fool Wealth Management -- explain to a listener who owns some shares of Mazor Robotics (NASDAQ: MZOR), which recently purchased by Medtronic (NYSE: MDT), what will happen next.
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[@JerryDan-ru4jd09]

Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[@Shameka-yp2dj34]

Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder

[@Merryl-hc3rf34]

The truth is that this is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. My friend just pulled in more than $84k last month alone from his investment with his advisor. That is how people are able to make such huge profits in the market

[@Sarah-nt6ve11]

nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?

[@Merryl-hc3rf34]

ANGELA LYNN SCHILLING' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.

[@Sarah-nt6ve11]

Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.

[@AnzuYT]

Good job doing everything but answering the question.

[@douglaskauff4748]

I would like to know what happens to "call options" when there is a company being bought.

[@giantasparagus]

With twitter going private I was wondering how it would impact current holders.

[@meow-ic6gz]

them they would instantly turn into an angel investors cause they own a share of a private company but the same thing goes as before if the value of that company goes the down the shareholder would lose his or her share of the pie too

[@kevlamar6613]

Great information thanks!!

[@dlouise64]

I bought shares/stocks the day a company announced it was selling to another major company... 😵

[@ctreid89]

Was it Tiffany?

[@Hohmies86]

What about CORV and their sayin 3 weeks ago there’s a cash sell lined up and also sayin they might get fda approval monday

[@vorkev1]

now i donot know how this works but i herd some time back that if a company sells that technicly your share shows ownership in that company and that you can go to cort over owner ship rights and demand that you get the value for you stock worth of what the company sold for. and i understand the companies value is in its stocks. but the hiden value is value out side the sock and value gained buy selling off the assets of the company that are not counted like office equipment and property owned buy the company and company cars. i was told this is a super rare thing but people have dun it in the past and got a lot of money from it. has anyone elce her of this. i mean it makes cents since you are a owner in that company.

[@yiyi-py3ew]

This is great information on how upside options are becoming operational.

[@cryptopathfinder4536]

what happens to short positions if a company goes private?

[@badnoise69]

What about if the company is private that was bought by a public company. Then they offer you a dollar per share but do not tell you the exact market value of the share. Sketchy? Obviously I’m having a lawyer look at it

[@diceflawless9115]

So i guess i got it backwards. I bought Maxwell stock after hearing about the Tesla acquisition. I thought this would make it go up

[@Rich-lc3my]

Have you got any more info on this. I'm about to buy maxwell stock.

[@annegue2149]

What happen to stocks if the company nationalized???

[@Thejudge4545]

OOF

[@hns4849]

Do you tell me rcom

[@ninatran1884]

what’ll happen with investors that are holding First Republican Bank’ stocks now. Anybody who has an answer for this situation please feel free to reply. Thanks

[@Link-ny9xz]

Thoughts on Univec ? UNVC

[@treedomfinance8452]

Buy VOO Instead

[@Slojo-fp3bp]

What about an option that you have in play? Say a call option?

[@MasonsTurtle]

I'm watching this because of the Fitbit Google deal.

[@dsaguilardenis]

Mason 美生 What do you think it will happen? I’m watching this video because of that too!

[@MasonsTurtle]

@@dsaguilardenis I think google bough fitbit at around $7.35 a share so based on this video, I guess I shouldn't expect it to go above that. So I sold.

[@somethingstrange2576]

Me to i bought in a 3.96 cent a share trying to figure out the next move

[@user-ed1lj5vt7k]

@@MasonsTurtle was that a good decision?

[@MasonsTurtle]

Nora Quandeel Yeah, i got some profit from it, but I did notice the price of Fitbit never rose above the purchase price of Google. So it never went past $7.

[@DEEZNUTSBIOCH]

I have a Shares in JCPenny's wondering if the same would happen if Amazon acquires JCPenny's.

[@EzraMerr]

Would happen yes, but you have to consider if you want a cash buyout or not, because it is a matter of paying income tax or capital gains tax

[@gerardshorticultureculture7579]

Great advice watching TMobile and Sprint battle . I hope it goes through, Dems blocking it

[@Imagynuity]

Gerard's Horticulture Culture they’ve been working on this for almost 4 years

[@Thereisalwaysmore]

It just did

[@jaouadafkir5416]

I am Moroccan I live in Romania I want to clear it I need help

[@user-db1qk5gf7z]

here cuz of Twitter lol

[@andresferrer7628]

A KZbinr attorney calling one of the parties in a lawsuit a “complete idiot” might be a stretch. You’re obviously partial and should recuse yourself of giving a personal opinion disguised as legal argument. You’re misleading. Selling a public company and then burning off 90 million dollars is obviously against the company’s best interest - it’s close to sabotage. You are justifying that with the share price of the final sale just because you hate one of the parties. On top of that, you’re a personal injury attorney. You should know better about attorney fees. You charge based on the outcome of the case, normally 20-40% of the total amount. Do you also stiff your clients with hourly bills before you win a case? Even if it’s not in the contract? I figured as much

[@Datcat1988]

So boring but very informative. Painfully boring.