What happens in the stock market after a buyout?
（i am really new to the stock market. i haven’t checked the stocks in over a month, and during that time a buyout took place. Wells Fargo bought Wachovia maybe the buyout took longer but i wasnt paying attention anyway i had made alot of money off wachovia but i didnt take my money out what happened to it?）
Answer：
Wells Fargo’s purchase of Wachovia was completed in an all-stock transaction. That means that for each share you owned in Wachovia, you received a share (or portion of a share) in Wells Fargo.
“Wachovia shareholders received 0.1991 of a Wells Fargo share for each of their shares, valuing the bank at $5.87 per share.” see source
So if you paid more than $5.87 for your Wachovia shares, you lost money on the transaction.
Posted: July 29th, 2010 under US Stock Market.
Tags: buyout, in the stock market