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Bought stock in PMII at $.52 and now they are being acquired by Covidien for $2.08 per share of common stock. I wanted to keep this for a few years.
What does that mean for me? Does my stock convert to Covidien shares or do they essentially buy out the shares and I would just have to take the short-term gain?
That depends on the terms of the buyout agreement. Legally, they are not required to issue you shares in the succeeding company unless you have some sort of specific contract right to that effect.
So, if they don't issue shares would I just get a check in the mail?
Someone I work with said the acquiring business would send me a letter and then I'd have to mail them my stock certificates back when I got a check. I bought through Scottrade and don't have a physical stock certificate. I'm assuming so many people buy this way that there won't be a problem. Anything special I need to do?
Agree with other poster, it depends on the deal. I received cash when InBev bought BUD, When Kraft was spun off I received stock, same with Smuckers. When I worked for a company that was acquired my stock was converted to the new company stock at some predetermined ratio. In my experience its been a good deal.
So, if they don't issue shares would I just get a check in the mail?
Someone I work with said the acquiring business would send me a letter and then I'd have to mail them my stock certificates back when I got a check. I bought through Scottrade and don't have a physical stock certificate. I'm assuming so many people buy this way that there won't be a problem. Anything special I need to do?
Thanks.
If you bought it through online broker then most likely everything is automatic, you just need to check your records during the dates of the change over to see it happen. I forget the details, but all the times my stock changed to another company I didn't do anything, it just shows up in the account differently. So if it's a stock trade you will have a different stock show up in your account, or you will have a cash balance for a cash transaction.
I dont think you will have to pay on Capital gains if you dont 'sell'. But my BUD stock was in my IRA so I wont see tax implications for several years.
Too bad I didn't buy 10k shares Now that would have been a nice gain.
I'm new to this whole thing and I bought just 300 shares of this and 100 shares of OSK back in Mar or Apr just to get the feel of using Scottrade and to get a handle on the whole process. It's a learning experience but it's been fun.
I'm starting my research on other stocks that I'm interested in (I kind of like the ETF UNG). I'll buy more shares than the small amount I did on these but still consider anything I spend on stocks to be 'play' money. It's like going to Las Vegas, anything I take there I assume is spent and gone. That way if I come back with any of my spending money I'm happy and if I don't, it's expected and not a disappointment.
Always wondered about friend who l.oved to go to Vegas but didnt invest. Im the other way around. The stock market is my Vegas, without strippers though.
I have a question, i had some stock in a company called delcity wire and they changed hands and closed down a few of their shops.. But they are still active.. And i never recieved my 401k from them. I called them and they said they sent me out a check and i told them i never recieved it. And they said they show that it was returned and they deposited it back into the 401k and they sent me something to file with the irs , i told the lady i had not recieved anything so i aint filing it until i get the money.. She told me she would find out where it was but it was showing it was deposited back into the 401k. But she has never called me back this was over 4 years ago.. What should i do ..
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