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-   -   why did my stock account not gain value? (https://www.askmehelpdesk.com/showthread.php?t=755529)

  • Jun 26, 2013, 09:06 AM
    jbpsteelers
    why did my stock account not gain value?
    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?
  • Jun 26, 2013, 09:09 AM
    JudyKayTee
    You are leaving something out - what does your latest stockholders report say?
  • Jun 26, 2013, 09:32 AM
    jbpsteelers
    why did my stock account not gain value?
    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?
  • Jun 26, 2013, 09:36 AM
    ScottGem
    What account? Please don't start multiple threads for the same question. I've merged your threads for you.
  • Jun 26, 2013, 02:00 PM
    ebaines
    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.

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