answersLogoWhite

0

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.

User Avatar

Wiki User

15y ago

What else can I help you with?

Continue Learning about Finance

What does acquired 100 shares mean?

Generally speaking the phrase of "acquired 100 shares" means that a person has purchased 100 shares of a corporation's stock.


How do you become preference shareholder?

To become a preference shareholder, you typically need to invest in a company's shares specifically designated as preference shares during an initial public offering (IPO) or through a private placement. Preference shares can also be acquired on the stock exchange if the company is publicly traded. These shares often provide fixed dividends and have priority over ordinary shares in the event of liquidation. It's important to research the company's financial health and the specific terms associated with the preference shares before investing.


Do market shares burden the company?

Market Shares depend upon the company prices. If market down then company shares will be down. Then its true that market shares is always burden for the company.


What is the position of an applicant for shares bofore allotment and after allotment of shares?

Before allotment of shares position is Applicant. He doesnt owner of the company. He do not have any rights on company profits and he is not liable for company liabilities. After allotment of shares he become Share Holder. He has right to get company profits. He is the owner of company. He is liable of company liabilites to the extent of his shares.


Can you explain how shares work in a private company?

In a private company, shares represent ownership in the company. When you own shares in a private company, you have a stake in the business and may receive dividends or have voting rights. The number of shares you own determines your ownership percentage in the company.

Related Questions

How can market shares be acquired?

Market shares are acquired by purchasing them, either through a broker or an online investing service. Acquiring market shares is simply an act of purchase stock in either a company or commodity.


What happens to the stock of a publicly traded company in chapter 11 if it is bought out by another company?

It can be two ways. If the other company is a publicly traded company, the shares of the acquired company would get merged with the acquiring company's shares. All shareholders of the acquired company would be issued new shares of the acquiring company at a ratio that would be defined during the acquisition. If the other company is not a publicly traded company, they may opt to retain the stocks in the market of buy them all from the investors at a predefined price that gets fixed during the acquisition.


What does acquired 100 shares mean?

Generally speaking the phrase of "acquired 100 shares" means that a person has purchased 100 shares of a corporation's stock.


When one company buys out the shares of another company it is known as?

When one company buys out the shares of another company, it is known as an acquisition. This process often involves one company purchasing a controlling interest in another, allowing it to integrate the acquired company's operations, assets, and resources. Acquisitions can be friendly, with mutual agreement, or hostile, where the target company resists the takeover.


What is 100 shares of Pennsylvania railroad stock worth today?

The value of 100 shares of Pennsylvania Railroad stock today would depend on several factors, including whether the company still exists, has been acquired, or has gone bankrupt. If the company still exists, you would need to look up the current stock price on a financial news website or through a brokerage platform to determine the value of the shares. If the company has been acquired or no longer exists, the value of the shares would depend on the terms of the acquisition or the liquidation of the company's assets.


What is a Company Limited by Shares in India?

A company limited by shares is a type of business entity where the liability of its shareholders is limited to the amount unpaid on their shares. This means that if the company faces financial difficulties, shareholders are only responsible for their unpaid share capital and are not personally liable for the company’s debts. Such companies can either be private or public, allowing them to raise capital through the sale of shares. This structure provides a balance of limited liability protection for owners and operational flexibility for the company. Key Features of a Company Limited by Shares- Here are the distinguishing features of a company limited by shares: Shareholders’ liability is confined to the unpaid portion of their shares. The company is treated as a separate entity from its shareholders and directors. The company’s existence is not affected by changes in ownership or management. Capital is raised by issuing shares to investors.


Do market shares burden the company?

Market Shares depend upon the company prices. If market down then company shares will be down. Then its true that market shares is always burden for the company.


Why do you think GM acquired the company while Ford did not?

Acquired what company?


How can a company pay dividend without affecting its cash balance?

Company can pay dividend in the form of bonus share without affecting the cash balance. For example if some one has 10 shares of $10 each, company simply can give him dividend of 5 bonus shares and now that person have 15 shares of total $100. So before bonus shares 10 shares of total of $100 Now 15 shares of Total of $100 In this way per unit share value reduce but company don;'t have to pay anything from cash and in this way cash balance doesn;t affected.


What is the position of an applicant for shares bofore allotment and after allotment of shares?

Before allotment of shares position is Applicant. He doesnt owner of the company. He do not have any rights on company profits and he is not liable for company liabilities. After allotment of shares he become Share Holder. He has right to get company profits. He is the owner of company. He is liable of company liabilites to the extent of his shares.


Can you explain how shares work in a private company?

In a private company, shares represent ownership in the company. When you own shares in a private company, you have a stake in the business and may receive dividends or have voting rights. The number of shares you own determines your ownership percentage in the company.


How many shares of stock does a company have?

A company does not have a definite number of shares of stock. The company can choose to split the number of shares into any ratio with prior announcement.