What happens to stock if two companies merge?

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Casimer Bergstrom asked a question: What happens to stock if two companies merge?
Asked By: Casimer Bergstrom
Date created: Thu, Sep 23, 2021 6:38 PM
Date updated: Thu, Jul 7, 2022 1:19 PM

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After a merge officially takes effect, the stock price of the newly-formed entity usually exceeds the value of each underlying company during its pre-merge stage. In the absence of unfavorable economic conditions, shareholders of the merged company usually experience favorable long-term performance and dividends.

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