What Happens If A Stock You Own Is Bought Out?

So this is actually a pretty good question. Let's say you just invested someone money into a company by buying stock obviously, and all of sudden you hear an announcement that Warren Buffet is trying to acquire the entire company.

What happens with the shares you own, is it even legal for him to do that and how does entire thing work.

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How it usually works:

First: the person in charge of the company is the person with more than half of the shares, 50% plus 1

Second: if the board of directors is for the buyout, then it’s a merger/buyout , if they are not then it’s a hostile take over

Third: the party trying to buy the company will usually offer a tender offer above the market price, to incentive share holders to sell

Forth: You can get paid with cash, or you can get with stock of the new company or you can be paid with both

Five: what happens to the shares ( well if the company takes the company private they disappear

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

[rudytroy]

If that happens you'll have to go to federal court to have your share certificates reissued under the new company and it takes 2 years and 30, 000 dollars weather you own one share or one million

[darrenjackson]

Three companies that I invest in are being bought albertsons, store capital, weber

[patrickcabahug]

Hey tommy, i always watch and appreciate the topics at hand. I recently bought a laptop to start finding side hustles. Tried upwork for freelancing but still waiting for clients. Can u give us tips and ways to get additional income?

[CoolestNobodyIRL]

Stock! My favorite company at the moment is Academy Sports & Outdoors(ASO). Throughout this year, I’ve been up on it since I got in at IPO.

[jamesevans]

Cool! Then I can buy EVGO and Charge Point and simply wait for them to get bought out. Thank You!

[jsp]

STOCK!! My favorite company is UPS. They were historically management owned and many long term management employees were millionaires from owning UPS stock because they were the only ones allowed to own stock. I was fortunate to be working there when they started allowing all employees to own stock (even part-timers) & I immediately began purchasing weekly through deductions. The stock went public soon after that (and split that same day too) and I was happy that I benefitted financially by owning my now “Type A” stock!! I continue to invest in UPS because I’m “long-term team” just like you always say Tommy!!

[Skapoodle]

hey tommy are you still planning on making a video showing us your house?

[Travelsbytiffany]

Is this the same as a company going private?

[mikeadebayo]

How do I know how much I could get from the takeover owning outstanding shares

[clindgren]

Great video!! And Canoo is my fav stock GOEV$$

[meriterick]

<Great video. you've remind me of what someone once said❤ Making money is an Action, keeping money is behavior, Growing money is Knowledge. I once attended seminar and ever since then i been waxing strong financially, and i most tell you the truth>

[ShockNAwww]

Too bad AAPL is too expensive for Buffett.

[ohyoulame]

This is what happened with Twitter when you almost bought it out I was very surprised because I actually ended up getting only one dollar from it😂