I bought shares from a private company before leaving it. They send me certificate for what they call "Common Stock".
Now the company was bought by another public company. I received a binder (more like a legal novel) all I could understand form it is: "All shares other than share of Series C Preferred Stock were canceled...", "You are not entitled to receive any cash...", "you have certain rights under Delaware law to seek appraisal of your stock..."
Can you please help me figure out answers to following questions:
Can they do that? Can they just cancel shares? I pulled up my stock option agreement and it clearly says under Change of Control section "the Options, shall be assumed by, or replaced with comparable options by, the surviving corporation."
What is that appraisal of stock do?
If I can't recover the money I spent is it possible to deduct them on taxes?