How can one individual buy the whole stocks of a company if the company is in the stock exchange? what will happen if 1% refuse to sell?
In: 3
Simply put. They generally can’t refuse.
Some rules are mandated by the SEC (for shares/companies in the USA) and others are written into the articles of incorporation and by-laws of the company. All of these are available to shareholders and are public documents once approved.
Very generally speaking, once a majority of the shareholders vote to agree to the buyout, the remainder have to come along. They have no choice – they should have known the rules before they bought the shares.
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So there’s two things. There’s buying some low percentage stocks on an exchange, when you do that then you go through a broker and buy at the market price. You can also make an offer for the entire company. When you do that, you put together a formalized offer, offering a premium over the share. So if the stock is $100, you’ll have to offer somewhere like $110 or more. Then the shareholders vote to accept the offer.
If the shareholders vote to approve, then ALL shares are bought. Even if you vote no, if you get outvoted, and you will one day go into your brokerage account to see the stock gone and money there.
How can one individual buy the whole stocks of a company if the company is in the stock exchange? what will happen if 1% refuse to sell?
In: 3
Simply put. They generally can’t refuse.
Some rules are mandated by the SEC (for shares/companies in the USA) and others are written into the articles of incorporation and by-laws of the company. All of these are available to shareholders and are public documents once approved.
Very generally speaking, once a majority of the shareholders vote to agree to the buyout, the remainder have to come along. They have no choice – they should have known the rules before they bought the shares.
[removed]
So there’s two things. There’s buying some low percentage stocks on an exchange, when you do that then you go through a broker and buy at the market price. You can also make an offer for the entire company. When you do that, you put together a formalized offer, offering a premium over the share. So if the stock is $100, you’ll have to offer somewhere like $110 or more. Then the shareholders vote to accept the offer.
If the shareholders vote to approve, then ALL shares are bought. Even if you vote no, if you get outvoted, and you will one day go into your brokerage account to see the stock gone and money there.
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