What happens to its shares if a company is involved in a merger? Or if it faces a takeover? Is there some common practice in such case?
Gil just posted this in the Educational forum: http://stockaholics.net/threads/chapter-11-bankruptcy-restructuring.729/
Seems like this forum has the fastest responding community - I got my question answered with a video in couple of hours
Yeah, I got from the vid what happens after BK, but what about less major restructuring, like merger?
Shareholders get the bad end usually. For BK they may do something like: for every 100 shares you own, you will be issues 1 share of the new company if they are nice. In a merger there could be an exchange of shares between the two companies, so you would end up holding shares of the acquiring company and not the original one.
