Replies to post #6750 on Marker Therapeutics Inc (MRKR)

[Burrhead1]

Thanks ridingbulls

[nsomniyak]

If there was to be a buyout, the share price would not peg exactly to that price right away.

In most cases, the stock moves quickly to a price that is an 8-10% discount to the announced buyout price, depending on the amount of confidence the market has about the buyout going through. That discount would then narrow as the actual buyout date nears.

In rare cases the stock price would move immediately to or even above the announced buyout price. This would signal that the market expects either a bidding war or that the prospective buyer will need to sweeten their offer to get the BOD of the target company to agree to a buyout.