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M_T_Pockets

01/30/12 10:00 PM

#37813 RE: Shysurfer #37808

Usually the way a buyout happens is one of 2 ways. Cash for your shares, or shares in the buying company for your shares, at an agreed upon ratio.
So you get value in both cases.
(Mergers are a slightly different animal, usually happening by the second instance.)
In any case, you own a piece of the company (thus a "share" is called that for a reason, it is a piece of the company.). So when someone buys the company, you get a "share" of the price proportionate to the amount of shares of stock you hold of the outstanding (O/S) count.
That is it in a nutshell.
Hope it clears up the question for you Shy. If not, ask more. I'll try to explain.