Thread: Acquired Effects

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  1. #1

    Default Acquired Effects

    If a company is about to acquire another company that is established and would double their revenue, what generally happens to stock prices before and after the acquisition?
  2. #2

    Default

    Depending on how much the acquiring company is paying, their stock usually drops ahead of the acquisition.
  3. #3

    Default

    They now only have a non-binding LOI so I guess I have to watch the press releases and buy before they make the deal final.
  4. #4

    Default

    The details of the deal will dictate what happens.

    If I was buying a black box from you for $5, and this magic box printed five $100 bills everyday, then my stock would rallying big time!
  5. #5

    Default

    The company getting bought almost always goes up though, as a general rule. Of course there can be exceptions, but it's a fairly safe bet.

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