What Happens to Your Stock During an Acquisition?

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  • Опубліковано 4 лют 2023
  • If you own a stock that's about to get acquired, what will happen to your shares? To start, there are 2 main types of deals that can be made: cash or stock. If the deal is all-stock, you'll receive shares of the larger "acquirer" company in exchange for your shares of the "target" company. If the deal is all-cash, you'll receive cash in exchange for your shares. Income earned from this automatic sale is taxable just like a typical stock sale. In some cases, a deal may be a mixture of stock and cash. In this case, you'll be compensated with a mixture of cash and the acquirer's stock.
    Shell to Acquire Volta... The Future of VLTA Charging Stock:
    • Shell to Acquire Volta...
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КОМЕНТАРІ • 38

  • @priusyt
    @priusyt Рік тому +3

    Thanks for clarification!

  • @nishiki393
    @nishiki393 Рік тому +3

    Excellent informative concise vid!
    THANKS!

    • @stockprobe
      @stockprobe  Рік тому +1

      Glad you enjoyed the video! Hope you have a good week!

    • @nishiki393
      @nishiki393 Рік тому +1

      @@stockprobe Thanks, you as well SP! 🙂

  • @JJ-nm8sh
    @JJ-nm8sh Місяць тому +1

    V nice - thanks.

  • @karenromero1703
    @karenromero1703 Рік тому +7

    Seems like a scam. My average Volta price is $8 a share. I lost almost all my investment. This seems like it should be illegal. They shouldn’t force a sale and give investors Penny’s on the dollar.

    • @stockprobe
      @stockprobe  Рік тому

      It's definitely unfortunate situation. If there wasn't an acquisition, Volta likely would have gone bankrupt.

  • @ShivamKapoor_05
    @ShivamKapoor_05 5 місяців тому +2

    Great explanation 👍

    • @stockprobe
      @stockprobe  5 місяців тому

      I'm glad you enjoyed!

  • @khalafismail3123
    @khalafismail3123 11 днів тому

    if you kindly do Invitae current deal with Labcorp please

  • @djkingshameek
    @djkingshameek Рік тому +1

    If this acquisition goes through I’ll loose $10k. Sucks! Glad I seen this video cause I kept buying to get my cost average down 🤦🏽‍♂️

    • @stockprobe
      @stockprobe  Рік тому

      Sorry to hear-that's a big loss. A number of people have asked if they should keep buying to lower their average share cost. If you buy shares at 86¢ (or at least very close to it), and they get sold at 86¢ when the acquisition closes, then you didn't really gain or lose anything from those shares.

    • @barackthecomposer6642
      @barackthecomposer6642 Рік тому +1

      What will happen to the money I have on the VOLTA?
      Will SHELL show up on my portfolio?
      Will SHell respond that money for me?

    • @JasRog1026
      @JasRog1026 4 місяці тому

      I lost 11k in Volta thanks to Larry Jones

  • @SJ_Killy
    @SJ_Killy Рік тому +2

    Hey man, thanks for the breakdown. So.. would you say its a good time to buy stock during an acquisition?

    • @stockprobe
      @stockprobe  Рік тому +1

      It depends. If you believe the acquisition won't fall through and the stock is trading a good amount below the acquisition price, then it may be worth it to buy. But there's always a chance the acquisition could fall through.

    • @SJ_Killy
      @SJ_Killy Рік тому +2

      @@stockprobe understood, i’m from the UK and Manchester Football Club is in talks with some Sheiks from UAE, i’m thinking it could be a good investment. I believe there’s multiple people bidding for the club

    • @stockprobe
      @stockprobe  Рік тому +1

      I've heard of that, seems like an interesting situation! I don't know all the details though so I can't give a good opinion.

    • @SJ_Killy
      @SJ_Killy Рік тому +2

      @@stockprobe all good, cheers mate

  • @kingknowssbest
    @kingknowssbest Рік тому +1

    List 500 in volta shit hurts

  • @anascarlett3282
    @anascarlett3282 6 місяців тому +1

    So i had stock in zynga but they did a merger with take 2 interactive where on part was cash and the other in stock does that mean that I have stocks in take 2 interactive?

    • @stockprobe
      @stockprobe  6 місяців тому

      Yep, looks like you should've received "$3.50 in cash and 0.0406 shares of Take-Two common stock per share of Zynga common stock."
      Here was the announcement:
      www.businesswire.com/news/home/20220523005631/en/Take-Two-Interactive-Software-Inc.-Completes-Combination-with-Zynga-Inc.

    • @anascarlett3282
      @anascarlett3282 6 місяців тому +1

      @@stockprobe Cool thanks I was trying to figure it out but I got confused about all the tech lengo😅

    • @anascarlett3282
      @anascarlett3282 6 місяців тому +1

      @@stockprobe oh and does this mean my stock has the potential to grow into something bigger and more valuable in the coming years?

    • @stockprobe
      @stockprobe  6 місяців тому +1

      Yep, you own shares of Take-Two stock! But personally I'd only keep it if you believe Take-Two is a good investment.
      If you hadn't received those shares in Take-Two, would you have bought the stock anyway? That's usually my thought process.

    • @anascarlett3282
      @anascarlett3282 6 місяців тому

      @@stockprobe Well about that I actually got my stock for free from Robin hood when I first signed up cause they were doing a thing and I just thought it was gonna die off because zynga didn't look like it was going anywhere and then I left it alone for 2 years To find out that I know have shares and take 2 instead because zanga's murger And I plan on letting this one grow over the over the years cause I believe in take to they theyir creators have NBA2K they're the creators of civilization through the creators of Of grand theft auto and I'm a big fan of at least 2 of those game series and knowing that they have a game coming out in 2025 grand theft auto 6.

  • @aniharutyunyan7965
    @aniharutyunyan7965 Рік тому +1

    I lost a lot 😢 can l do at least tax lost harvesting?

    • @stockprobe
      @stockprobe  Рік тому +1

      Yeah I imagine it would count as a capital loss & you could use it to offset any taxes on capital gains or ordinary income.

    • @xih777
      @xih777 Рік тому +1

      I also lost hundreds, this is my first capital loss I will talk to my tax accountant

    • @aniharutyunyan7965
      @aniharutyunyan7965 Рік тому +1

      @@xih777 could you please share with me answer? Thanks 🙏

  • @coolhand_steve3706
    @coolhand_steve3706 Рік тому +3

    I sold my shares

    • @stockprobe
      @stockprobe  Рік тому

      I probably would do the same if I was holding VLTA right now

    • @barackthecomposer6642
      @barackthecomposer6642 Рік тому +1

      @@stockprobe
      My VLTA disappeared from my portfolio this morning.
      Where is that $4000?
      Will it be relisted under Shell in my portfolio

    • @stockprobe
      @stockprobe  Рік тому +1

      @@barackthecomposer6642 you should be receiving $0.86 for each share of Volta you had. This is an all-cash acquisition, so you won't receive any SHEL shares. It may take a few days for the cash to show up in your account. Contact your brokerage if cash doesn't appear after a while. Thanks for watching!

  • @RyanDick-vp5mn
    @RyanDick-vp5mn 27 днів тому

    So what about a complex acquisition like Lumiradx with Roche? I'm pretty positive Roche is not getting the marketed device as I believe the Columbia subsidiary holds it. Brazil holds the pet diagnostics device, so why not? What happens to the shares sold short in lmdx when this deal finalizes? Will the shares sold short convert into rhhby? 😂

  • @khalafismail3123
    @khalafismail3123 11 днів тому

    if you kindly do Invitae current deal with Labcorp please