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It may have either a positive or a negative impact on the price of your stocks.

Let us say XYZ Ltd has 1 million shares in the market out of which 400,000 is in the market and the remaining 600,000 shares is held by the management of XYZ.

Assuming ABC Ltd wants to acquire XYZ, the 600,000 shares would be owned now by ABC and the remaining 400,000 would remain with the investors.

Based on the history and past performance of ABC and the kind of management changes it plans on bringing into XYZ limited the price of the XYZ shares in the market might change. It can either go up or go down. Also, the share would get renamed to stocks of ABC Ltd and will no longer be stocks of XYZ Ltd.

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Q: If your company is acquired how are your shares affected?
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