Replies to post #19867 on American Bio Medica Corp (fka ABMC)

[justbecause516]

I wouldn't worry about a buyout here,I think there are other plans in order and hopefully they'll file on time next week to move forward correctly.

[The Rainbow]

If a buyout were to be announced, it is generally an offer to purchase all shares in the company for a set price.

Very basic concepts:

Let's say a company is trading at $1.00 and an offer for $5.00 a share is accepted by the BOD and shareholders.

If the company is taken private, the ticker will stop trading and you will receive $5.00/share for everything you own. The public entity goes away.

If it remains public, generally you will see buyers move the public shares towards the selling price because that is what it is valued at the time and life goes on as it was.

If the company is absorbed into another entity is when you may get shares of the buying company in exchange for the shares you hold, which is what you are thinking about. This is when you will see the ticker change to the buying company.

There is no set formula in any of these examples.