What Happens To My Shares In A Reverse Merger

What happens if you are short a stock during a merger?

I read the other answers, didn’t think they did your question justice. Basically when a stock you are short is acquired, you are out of luck. The share price rises to reflect the new information. A new class of buyer enters and the best you can do is cover quickly and go on. There is a chance, but small that the merger fails. The stock you are short will cease to trade. Cover and go on. If you are convinced the stock you were short is a bad company, and someone bought it anyway, you can always short the acquirer figuring they overpaid and can be drug down by the acquisitions problems.

What happens if I don't tender my NXPI shares and the Qualcomm takeover falls through? What if the deal happens?

When Dell bought EMC, I received a notification to tender my shares for payment. The certificates were in the attic, and I didn’t respond quickly. They offered to transact it without you returning the certificates, but at a 10% penalty, so, no.I finally dug them up and sent them in last month, 14 months after the merger.I expect your experience will be similar to mine between the call for shares and my return of them: You will probably get a mailer every two weeks requesting the return. First from the assigned company, likely Compushare, then a number of third party bounty hunters. That’s all.

What happens to the public company's stock on a reverse merger when the public company is valued 34% and the private 64%?

What happens to the public company's stock on a reverse merger when the public company is valued 34% and the private 64%?I am assuming you mean to write 34% and 66% which add up to 100%.The idea of a reverse merger is that the public company stays public, and is the surviving entity. So basically public company would issue new shares to the owners of the private company. The prior share holders of the public company would end up owning 34% of the combined entity, and the shareholders of the private company would end up owning 66%.So, if, the public company previously had (for example) ten million shares outstanding, the public company would issue another 19,411,765 shares, and give them to the owners of the private company.After that there would be a total of 29,411,765 share outstanding. The previous owners of the public company would own 34% and the previous owners of the private company would own 66%.

What happens to your stock when that company gets sold?

Companies often get sold or merged in the growth phase. When one company (or an investor) wants to buy another company, it proposes a deal to make an "acquisition" or buyout, usually by taking ownership of the company stock. Investors who hold shares of a company targeted for a buyout may have some options to consider.Tender OffersIn order to take control of the company the company desiring to acquire another company will propose buying shares at a price that is higher than the market price. Doing so current stockholder will have the financial incentive to sell. This is known as tender offer.Cash or Stock MergersFor shareholders, mergers can occur two ways. In a cash exchange, the controlling company will buy the shares at the proposed price, and the shares will disappear from the owner's portfolio, replaced with the corresponding amount of cash. Other times, companies will announce a stock-for-stock merger, in which holders of shares of the takeover company will have that stock replaced with shares of the new company. Often, the deal is structured as a combination of both methods, with shareholders receiving some cash and some stocks.