IFB100: What happens if you own stock in a company that gets bought out?




The Investing for Beginners Podcast - Your Path to Financial Freedom show

Summary: <br> Announcer:                        <a href="https://www.temi.com/editor/t/UTzt6Y1Y_AB4lQQSGvfbxN1rUIhxC1b6JLldlZ4OwHtELTOfeAM_R_N2izkaVHu3pjumijBA3UthMlGNUzxhx1xatGE?loadFrom=DocumentDeeplink&amp;ts=0.27">00:00</a>                     You’re<br> tuned in to the Investing for Beginners podcast. Finally, step by step premium<br> investment guidance for beginners lead by Andrew Sather and Dave Ahern to<br> decode industry jargon, silence crippling confusion and help you overcome<br> emotions by looking at the numbers. Your path to financial freedom starts now.<br> <br> <br> <br> Dave:                                    <a href="https://www.temi.com/editor/t/UTzt6Y1Y_AB4lQQSGvfbxN1rUIhxC1b6JLldlZ4OwHtELTOfeAM_R_N2izkaVHu3pjumijBA3UthMlGNUzxhx1xatGE?loadFrom=DocumentDeeplink&amp;ts=35.8">00:35</a>                     All<br> right folks, we’ll welcome to the Investing for Beginners podcast. This will be<br> our podcast episode 100 Ooh; we made it. That’s awesome. All right, so today<br> we’re going to talk about the basics of spinoffs and acquisitions, and we’re<br> going to, we’ve talked a lot about these from the aspect of the company buying,<br> but today we’re going to kind of go over some generalities of the other side.<br> So the company that’s being acquired or spun off. So Andrew, why don’t you go<br> ahead and take us off. I know we have a listener question regarding this as<br> well as some are our general thoughts on this.<br> <br> <br> <br> Andrew:                              <a href="https://www.temi.com/editor/t/UTzt6Y1Y_AB4lQQSGvfbxN1rUIhxC1b6JLldlZ4OwHtELTOfeAM_R_N2izkaVHu3pjumijBA3UthMlGNUzxhx1xatGE?loadFrom=DocumentDeeplink&amp;ts=72.1">01:12</a>                     Yeah,<br> so that fits right in and yeah, episode 100 let’s do something not special at<br> all and just treat it like any other episode. I’m down for that. Had a question<br> from a  listener to the podcast, and this<br> is about acquisitions. So Hi Andrew. Just started listening to your podcast and<br> the impulsively dove into the stock market through the Robin Hood and Mobile<br> App.<br> <br> <br> <br> Andrew:                              <a href="https://www.temi.com/editor/t/UTzt6Y1Y_AB4lQQSGvfbxN1rUIhxC1b6JLldlZ4OwHtELTOfeAM_R_N2izkaVHu3pjumijBA3UthMlGNUzxhx1xatGE?loadFrom=DocumentDeeplink&amp;ts=95.92">01:35</a>                     We<br> should slap this person on the wrist. I’m cautiously putting it in a mere $600<br> into a variety of stocks. I was wondering if you could cover how a company’s<br> stock gets affected if they get acquired by a larger company. Is it a good time<br> to buy when that happens? Is it the worst time to buy? So something that you<br> know we can cover and then we’ll try to keep it short because these things can<br> be very, very complicated. But it’s important to know just as a gen...