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Re: Stock Noob post# 30858

Friday, 11/04/2005 2:47:19 PM

Friday, November 04, 2005 2:47:19 PM

Post# of 286282
OT: Stock Noob,

No guarantees on the validity of this info, but this is how I understand it.

It can vary from company to company. It can be a simple cash amount in exchange for your shares, a trade of the buying company's shares for your old shares, or a combination of both. There is no set rule to follow.

When buyouts are done, the shareholder of the old company USUALLY gets a modest return on the then-current value of the stock. So, a theoretical cash buyout of GZFX would probably get us no more than 1 or 1.5 cents per share. So if this case were a share trade, we'd probably only get 1 share of CC for 2000 shares of GZFX...a modest gain over what GZFX is currently worth.

In the end, it's all about the Market Cap of each company, and how much the buying company THINKS the target company is worth to them.

I hope that helps.