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Deer savvy investors.
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Deer savvy investors.


Nov 19, 2019, 3:32 PM

What happens with the major holders of stock when companies merge.

I'm talking the individuals with thousands of shares that were involved in making the deal. It seems that the stock price would crash pretty hard if those folks sell all of theirs at once.

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CALLING DANE!!!!!!!!***


Nov 19, 2019, 3:36 PM



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Re: Deer savvy investors.


Nov 19, 2019, 3:38 PM

Typically there is a "lock-up" period where "insiders" of the company cannot sell their shares for a period of days. Depending on how the deal is structured they may not sell for 90, 120, 180, etc days after the deal is closed and the stocks starts trading on the market at the combined company.

Same thing for IPO's........need to pay close attention to the lock up period on these as well. Example..........start up Tech company goes public. Most employees may not sell their new "fortune" of stock for say 90 days after trading. On that 91st day guess what happens many times?..............

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I see. I didn't know if maybe some of the


Nov 19, 2019, 3:43 PM

biggest players didn't give up their stock in exchange for cash in the deal. That way they can ride off into the sunset and the next group of major players still be set up for their turn.

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Re: I see. I didn't know if maybe some of the


Nov 19, 2019, 5:20 PM

Depends on the deal.

Say you own shares of the company that is acquired. The company buying you may give you shares of new company, cash for your shares, or a combination.

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