Ask Experts Questions for FREE Help !
Ask
    jbpsteelers's Avatar
    jbpsteelers Posts: 2, Reputation: 1
    New Member
     
    #1

    Jun 26, 2013, 09:06 AM
    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?
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #2

    Jun 26, 2013, 09:09 AM
    You are leaving something out - what does your latest stockholders report say?
    jbpsteelers's Avatar
    jbpsteelers Posts: 2, Reputation: 1
    New Member
     
    #3

    Jun 26, 2013, 09:32 AM
    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?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #4

    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's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
     
    #5

    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.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How to calculate stock in trading account? [ 0 Answers ]

In trading profit and loss account

Retrieving account/stock info [ 2 Answers ]

I'm pretty confident that I have bank accounts/stocks/bonds which my estranged father set up when I was a child although I don't know at what banks. He has an account at almost every major bank in canada. Since he keeps the finances in our family very secret and refuses to give me any helpful...

Is stock gain/loss counted the same way as income? [ 1 Answers ]

I registered Turbotax, and auto imported 1099 docs From the bank. It seems the stock gain/loss is treated the Same as wages, both for IRS and the state. Anything can I do to reduce it?

Share/Stock Account [ 4 Answers ]

Is there any accounting package for acounting Profit or Loss of my Share/Stock Account?

Capital Gain/loss in joint account - filing separately [ 1 Answers ]

When filing separately, who must claim capital gain/loss for a joint account


View more questions Search