What happen to the share which i hold near me, once the company is overtaken by any other company?
Answers: Hi Bishwanath,
Say for example, you have shares of Yahoo! and Microsoft takes over Yahoo! Assume you enjoy 100 shares of Yahoo! When Microsoft agrees to acquire Yahoo!, it will declare its swap ratio. This ratio states how many shares of Microsoft will be issued to the shareholders of Yahoo!, and contained by what proportion. Say, the ratio is 1-for-2, then one Microsoft share will be issued against 2 shares of Yahoo!
So, in your overnight case, you will get the shares of buyer company. But how many shares you get hold of depends on the swap ratio declared by the buyer company.
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