What happens to my shares in the case of a buyout?

What happens to my shares in the case of a buyout?

All this talk of a buyout has me wondering what will happen to my TSLA shares? If Apple buys Tesla, do my TSLA shares become AAPL shares? Is a buyout generally a good thing for the shareholders?

Haeze | 13. tammikuu 2014

The company won't be bought out. The valuation is too high to be worth it to any would-be buyer (they would spend WAY more money than they would receive by buying out the company).

If it were to happen though, you would see it in the news that Company A is buying X million shares of stock, at which point the stock price skyrockets because people know their sell orders will be covered.

So for you, the price of your stock would go up, and if you still don't sell, the company still remains public, so your shares are still worth the same percentage of the company's total valuation. If people see it as a good thing that the company got bought out, the price will remain high, or go higher. If they think the new company will be run into the ground, the price will go down.

The only way your shares would "go away" would be if the takeover company that bought out your company decided to go private, or absorb the company into their own. The only way they can do this is by buying out all remaining shares, or offering a stock trade where you get a fair value of the larger company's shares in exchange for your shares of the company that got taken over.

Captain_Zap | 13. tammikuu 2014

Elon has said over and over again that he will be the last to sell a share. I think he would battle to go private again before letting it be taken over. He knows who killed the electric car and why.