How a Spin-Off Works for Shareholders: Shares, Dates and Cost Basis
A spin-off turns one holding into two. What the record date and distribution ratio mean, why the parent trades two ways for a few days, and how to split your cost basis.
Category: Shareholder Rights
Tender offers, merger votes, appraisal rights, proxy statements and how to read the SEC filings behind a deal, for ordinary shareholders.
What Happens to Your Shares When a Company Is Bought
You usually do nothing and your broker swaps the shares at closing. This guide explains the consideration, the timing and what the tax section of the proxy says.
What a Reverse Stock Split Means for Shareholders
How a 1-for-10 or 1-for-50 reverse split changes your holdings, what happens to fractional shares, and why the $1 listing rules now limit how often companies can use one.
How to Read an 8-K: The Items That Signal a Deal
Deals, closings, layoffs and bankruptcies all reach SEC EDGAR as 8-Ks first. Here is how to scan the item numbers, find the exhibits and search filings yourself.
What Are Appraisal Rights in a Delaware Cash Merger?
Holders who think a cash buyout is too cheap can ask a court to decide the price. Here is how Section 262 works, the demand and 120-day deadlines, and the 1% or $1 million rule.
Old Stock Certificates: How to Find Out If They Are Worth Anything
Paper certificates turn up in drawers and estates. How to trace the issuer through mergers and name changes, check state unclaimed property and move the shares to a broker.
How a Tender Offer Works for Ordinary Shareholders
A buyer is offering cash for your shares directly. Here is how the Schedule TO process runs, what the minimum condition means and what happens to shares that are not tendered.
How a Merger Vote Works: Proxy Statements, Record Dates and Results
Most mergers need shareholder approval, and the bar is higher than people think. What is in the proxy statement, who gets to vote and what happens if the vote fails.
What Happens to Your Shares When a Stock Is Delisted
Delisting removes a stock from Nasdaq or the NYSE, not from your account. The steps from the first deficiency notice to OTC trading, and what changes for shareholders.