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View Full Version : why did my stock account not gain value?


jbpsteelers
Jun 26, 2013, 09:06 AM
I purchased stock in company for around $1 per share. The company was purchased by a bigger company and the share value went up to over $12 per share but the value of the account stayed the same?

JudyKayTee
Jun 26, 2013, 09:09 AM
You are leaving something out - what does your latest stockholders report say?

jbpsteelers
Jun 26, 2013, 09:32 AM
I purchased stock in company for around $1 per share. The company was purchased by a bigger company and the share value went up to over $12 per share but the value of the account stayed the same?

ScottGem
Jun 26, 2013, 09:36 AM
What account? Please don't start multiple threads for the same question. I've merged your threads for you.

ebaines
Jun 26, 2013, 02:00 PM
I suspect that what happened is when the bigger company bought out the stock you originally had you received fewer shares of the new company in exchange for your old shares. This is pretty common when one company buys another. Typically when one company buys another the shareholders receive about the same total value in new shares as what they had before the buy out. For example - suppose you started with 120 shares of Company A worth $1 each, for an account value of $120. Then suppose that Company A is bought out by Company B with a deal that says shareholders will receive 1 share of Company stock for every 12 shares of Company A that they own. So you receive 120/12 = 10 shares of Company B in exchange for your 120 shares of Company A. If the value per share of Company B is $12, your account is still worth only $120.