Company take over

[ExChrispy Porker]

I own a few hundred shares in a company. If it is taken over ie bought, by another bigger company what happens to my shares?
Do I have to sell them to the new buyer? I can't believe I HAVE to do this!
If I don't, do I automatically own shares in the company taking over?
Do my shares become worthless ( surely not??)

Any advice gratefully received!!

[davepoth]

ExChrispy Porker said:

I own a few hundred shares in a company. If it is taken over ie bought, by another bigger company what happens to my shares?
Do I have to sell them to the new buyer? I can't believe I HAVE to do this!
If I don't, do I automatically own shares in the company taking over?
Do my shares become worthless ( surely not??)

Any advice gratefully received!!

In order:

Yes, you have to sell the shares if the vote of the shareholders results in a majority in favour of the takeover. What you get depends on the offer - sometimes shares, sometimes money, sometimes a combination of the two. The shares don't become worthless.

[ExChrispy Porker]

Thanks.
I think that is reassuring. Democracy at work I suppose in the shareholders vote. Do the number of votes you get equal the number of shares you own?

[TooLateForAName]

yes.