stocks

[sosoo]

hi, i understand a number of ppl here are knowledgeable of
stock investment, and im curious. if u buy stocks from a small
company, and then one day the company gets bought out,
takeover, whatever u call it, so then what happens to your
stock investment? does it carry over to the new merger? do
u get a profit?

the reason i ask is it happens with a ton of pharmaceutical
companies. i cant afford to buy stocks of a big company, but
a smaller one will likely get bought out.

 

[Its Z]

http://media.pfizer.com/files/investors/shareholder/Pfizer_Wyeth_FAQ.pdf



This describes how Pfizer handled Wyeth acquisition. If you bought a small cap pharma stock that was eventually purchased by a larger pharma, you will have most likely made some money. I buy small pharma stocks.