Hi, I am new to stocks. I was wondering if someone can explain to me what happens after a merger with the stock price? Please feel free to direct me to some articles/books if this has been already thoroughly discussed.
For example, let's say two companies merge. Company A has a market cap of 14B and is currently selling at a stock price of $25 per share. Company B has a market cap of 7B (half of A) and is currently selling at $500 per share.
To make things simple, let's assume that the investor sentiment is neither good nor bad and does not impact stock price in any way.
What would the stock price typically be for this combined company once the deal closes?
Thanks!
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