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Wednesday, May 12, 2021 12:50:57 PM
The company shell and the incoming new business do not pay anything to the shareholders.
What they do is accumulate shares at market value in the open market to show their legitimate takeover of ownership of the company.
Many companies can be privately sold, this is more expensive for the new owners.
The owners pay nothing to share holders.
When they announce the new business sand their upcoming news etc etc And their prospects for the future. Investors digest this info and decide whether or not to buy in.
It is then that the existing shareholders see the value rising with buy demand..
That is how it all works my friend.
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