Penny stock buyouts

Don't hesitate to tell us about a ticker we should know about! Context and insight must be provided; empty posts or empty posts with links will be automatically removed. Posts regarding this topic will be automatically removed.

What happens if a penny stock is bought by a larger company? Do they immediately go up to the parent company's price?

Do they stay the same? How does this work? I will add as I haven't seen a complete answer yet. Generally, MPP shareholders will vote on whether or not they will accept a buyout offer.

In this situation, KO would say that MPP shareholders will receive one share of KO for every So if they accept, there will be no more MPP shares and now only KO shares.

Trump, Earnings and the Trouble With AT&T Inc (T) Stock | InvestorPlace

Generally KO will create new shares to offer to MPP shareholders, so the total number of KO shares in existence will go up. The change will not be immediate as the deal can fall through for one of many many many reasons. If KO stocks can be created out of thin air to buy things with, isn't that like printing money?

Any public company can issue more shares with approval from the board to sell publicly or privately.

It goes something like this:. This implies that the entire company KO, including people, patents, desks, computers, talent In the example above KO's value would take a slight hit, but that would be offset by all the cool new prospects of things they can do with MPP.

That's a necessary evil though. You can't print new shares too much or they'll become inflated worthless.

They are still two separate companies. The stock may rise to the price the buyer bids per share, but it's not guaranteed to stay there.

I would say it'll correct to the buyer's bid. This bid could easily be lower and cause the stock to go down.

AK Steel Holding Corporation (AKS) Stock Booms on Buyout Rumors | InvestorPlace

They will buy out all the shares, either with their own shares or cash. That 4 cent stock might suddenly liquidate for 6 cents a share, or get you the equivalent value in Coke shares. I have had both scenarios happen to my pink-sheet stocks in the last few years - one was a strip club that got bought out by a bigger one, another a rehab clinic which turned into 79 shares of AAC for me.

Use of this site constitutes acceptance of our User Agreement and Privacy Policy. By signing up, you agree to our Terms and that you have read our Privacy Policy and Content Policy. Log in or sign up in seconds. Submit a new text post.

Technical Analysis and Penny Stocks

Resources Wiki for new investors Join our live chat! Pattern day trading Rules Disclose any open positions when discussing a particular stock or financial instrument. Spam, ads, business solicitation, and self-promotion posts or comments will be removed.

Trolling, insults, or harassment, especially in posts requesting advice, will be removed. Are old books like "The Intelligent Investor" or "Why Stocks Go Up and Down" out of date?

Past and Modern day stocks. I put 10k into a couple tech stocks, it's performing well, would like to migrate more of my portfolio into it, what should I do? This is an archived post. You won't be able to vote or comment.

Thanks for your answers. It goes something like this: Posts are automatically archived after 6 months.