Hi everyone,
Over the past year I've started investing in individual stocks. I have a situation I'm not well educated in. I own stock in company that is being bought out. For simplicity, let's say the deal is 2 for 1. I get 1 share of the acquiring company for 2 of stock I own. Is there a philosophy in investing where it would be smart for me to buy more of the stock I currently own so I can get more shares of the acquiring company theoretically at a discount?
The companies in play are Yamana Gold (AUY – last traded at $4.47) being acquired by Gold Fields (GFI- last traded at $8.13)
I'm not asking so much for you to tell me exactly what to do, but how best to understand these situations so I can make an informed decision.
Thanks for the help!
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