Profit/Loss during acquisition

#1
Hi All,

If I have some stocks/shares of a company A and this company A is acquired by another company B. What will happen to my stocks of company A. Are there any chances of huge losses?

Thanks.
 
Last edited:

Mr.G

Well-Known Member
#2
You will get stocks of company B and any payment in kind as decided during acquisition process.

Any premium paid by the B, will be put on as good will on the balance sheet and amortized over time as an acquisition is a long term investment.

Other things remaining constant.
 

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