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What happens to stock prices when one company is bought out by another?

Irony Of Poe asked:


What has traditionally happened to the stock price of the company being bought out? Does it rise? Or does the buying company purchase all the stock for very little and current stockholders lose their butts like with Bear-Stearns?

I’m asking this because I want to know what will happen to National City’s (NCC) stock if it gets bought out.

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This entry was posted on Tuesday, January 12th, 2010 at 1:22 pm and is filed under Other - Business & Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “What happens to stock prices when one company is bought out by another?”

  1. jacob m Says:
    January 13th, 2010 at 12:34 pm

    i do not know no body knows because its provtiv

  2. Roy Says:
    January 14th, 2010 at 7:54 am

    You will get what price is offered for the company per share. Typically the purchasing company offers more than the market value, so your shares will increase in value to what is being offered. The Bear Stearns case was a rare exception since companies in financial trouble usually aren’t good acquisition cadidates.