If a company is bought by another company, does my stock rollover to the new company when it is combined with the new parent company?

  • 2
    It depends on the acquisition, sometimes, yes. Sometimes you're issued new shares of the acquiring company based on your holding in the current company. Sometimes all shareholders are issued new shares of a new company. Sometimes you keep your shares and the acquiring company just now owns a lot of shares of acquired company.
    – quid
    Jan 13, 2017 at 19:55
  • 2
    Sometimes you get paid cash for your shares. There is no firm rule on what happens, it depends on the details of the acquisition deal.
    – zeta-band
    Jan 13, 2017 at 20:58
  • 1
    Or (IME less often perhaps because more complicated) a mixture of cash and new stock. Jan 13, 2017 at 22:35

1 Answer 1


company is bought by another company

This depends on how the deal is structured, it varies from case to case basis. Plus it is also how much percentage the new company is buying, the local regulations.

All Cash Deal: Everyone of the old company is given cash at valuation rate. You can on your own buy shares in new company.

Share Swap: The Swap ration is defined, for every "x" of old shares you get "y" of new shares. Note this may at times leave some fraction shares and these are cashed out.

Part Share / Part cash: Combination of above two.

Retain as same: In this only the promoters shares are purchased as stage one. So nothing happens to your shares, you retain them as earlier.

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