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Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
in Home, Law & Money
A while ago I got someone to buy me a 1000 shares in a company that were selling them for 2p each, now I hear that this company are going to merge
with another company that are selling shares at 200p... does this mean my shares will be worth 200p each or will that company decide what they will pay each share holder??

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    A value for your shares will be agreed between the two companies and you will be given this amount of the new shares. If that makes sense.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    It does. Thought I was gonna be rich :(
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Makoto wrote:
    It does. Thought I was gonna be rich :(

    The value of your shares will have probably gone up they normally do with mergers.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    With a merger or acquisition the new company will agree a price to buy the shares of the old company, or alternatively offer you shares in the new company.

    You'd be best off discussing this merger with your stockbroker to see if its worth selling. Shares, of course, are only worth anything if you sell.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Kermit wrote:
    Shares, of course, are only worth anything if you sell.

    There is the dividend pay out, but on 1000 shares valued at 2p each thats not going to be massive.
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