Why stock delisted after Merger/acquisition ?

Admin

Administrator
Staff member
May 18, 2022
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What is Merger/acquisition?

A merger is an agreement that unites two companies into one new entity. There are several types of mergers, which are carried out for various reasons. Mergers and acquisitions are commonly carried out to expand a company’s reach into new segments, or gain market share. All of these are done with the aim of increasing share value.


Why stock delisted after Merger/acquisition ?​


If the aforementioned stock is the acquired party, then it will be delisted from the platform and users will receive the notional amount according to the acquisition terms. If the aforementioned stock is the acquirer, it will continue to be offered on your broker platform.

Should the terms of the agreement call for it, Your broker may credit your account with the value of any additional shares or dividends offered for this action.
 

Felix Hans

Member
Sep 14, 2022
61
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What is Merger/acquisition?

A merger is an agreement that unites two companies into one new entity. There are several types of mergers, which are carried out for various reasons. Mergers and acquisitions are commonly carried out to expand a company’s reach into new segments, or gain market share. All of these are done with the aim of increasing share value.


Why stock delisted after Merger/acquisition ?​


If the aforementioned stock is the acquired party, then it will be delisted from the platform and users will receive the notional amount according to the acquisition terms. If the aforementioned stock is the acquirer, it will continue to be offered on your broker platform.

Should the terms of the agreement call for it, Your broker may credit your account with the value of any additional shares or dividends offered for this action.
Well said. Actually, stock delisting after merger/acquisition is a common occurrence, and there are a couple of reasons why it happens. One reason is because the company that bought your company may not have wanted to keep your stock as part of its portfolio. In this case, if you owned shares of the original company before it was acquired, those shares will be converted into shares of the new company.

Another reason could be that one company paid cash for another company's stock while also agreeing to buy back any outstanding stock at some point in the future. This way, they can avoid paying taxes on any gains they may have made from selling off the acquired company's assets (like property or equipment).

Another reason is because one company took over another and decided to dissolve it entirely instead of keeping it going under its own name or management structure. If this happened before you had time to convert your shares over into shares in another company, then those stocks would no longer exist once all their assets were liquidated by whoever was left owning them after everything was sold off for cash--which might mean your money went down with them if you didn't know what was happening until after the fact!