I'm getting confused about all of these TWTR posts. Maybe I'm missing something. I was under the impression that Elon Musk is taking the company PRIVATE. A private company does not trade on an exchange. Therefore, as long as the buyout closes, you will receive 54.20 per share deposited into your account. That's it. It can't go above that amount. You will LOSE money if you bought it above the 54.20 buyout price so the market prices it accordingly.
DimaFX
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@smlink111, can you not sell at that price also? What happens in this case?
SMLFinwave
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@DimaFX, You can sell at anytime before the buyout closes. But, price will not rise over 54.20 because fair value has been declared. It will trade lower for a risk premium in the event the market doesn't believe the deal will go through. So, if you buy today at 49, then you are guaranteed the spread between 54.20 and your buy price when the deal closes. Price will continue to fluctuate, but it probably will not go down much further unless the risk of the deal not closing becomes greater.
DimaFX
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@smlink111, thanks. What I meant is: can I refuse the 54.20 and still hold the shares when they get delisted? As far as I understand, I'm not obliged to agree to sell them or?
SMLFinwave
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@DimaFX, You cannot refuse the 54.20. The corporate board, who speaks for the shareholders, have agreed to the terms. Once the deal closes, it's Elon's.