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Stocks and Shares · Equity specialist topics · lesson 5 of 9 · 7 min read · David Alexander

Takeovers, and what happens to holders

takeover offer

A bid for the company itself: cash per share, acquirer's stock, or a mix - typically at a substantial premium, landing as a gap on announcement. From there the share trades against the deal's terms and its probability of completing, not against the business - a different instrument wearing the same ticker, with its own calendar, risks and endings.

This lesson is part of the advanced modules.

Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.