Rumor is that WFC is looking to make an acquisition. Many companies have been mentioned as candidates. My question is, when one company acquires another, one may go up and the other down, how do you determine which company will rise and which will fall in price.
Dude, that's called "risk arbitrage" or "merger arbitrage". You don't even know the first thing about it and you want to go and do that trade? LOL You should go do your homework. I'm just amazed by the number of newbies coming on here asking the most basic questions and not doing ANY background research. You'll get rip to pieces in the market if you dont know what you are doing... The people on the other side of your trades are not there to give you free money you know? keke. You want a shortcut. There ain't no shortcut in life.
I want to apologize to both you and the board for my recent post. I see the problem you describe with all the clutter on the board from the newbies. However I do also want to thank you for the mention of âmerger arbitrageâ as it gave me a search term to research. I found a link with google that gave me a pretty good understanding of the subject. Thanks againâ¦
There he goes again..acting like he's Warren Buffett......more like Warren Baffooooon.... Cocky son of a bitch.. when i get started, Im taking you down.....DOWN..... At least I have some kind of motivation now~
As a general rule, the Acquring Company's stock price will go down and the Acquiree's stock price will go up on the first day the merger/acquistion announcement is released to the public.