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Unusual events on New Year's Eve

I have an unforgettable experience with investing on New Year's Eve.
It was two years ago (2022).
I wanted to check my income and expenses on New Year's Eve.
After the market closed, I looked at the securities firm's tool screen.
There is only a ticker symbol showing, but there are no numbers displayed.
At first, I thought it was a bug in the tool.
But it didn't make sense.
Could it be bankruptcy!?
So I called the securities firm.
The person at the securities firm also seemed unaware,
"I will investigate and contact you as soon as I understand the situation."
A few minutes later.
"Seems like it got acquired."
"Huh!?"
At the last moment of New Year's Eve, right after the market closed, an acquisition.
There were no signs at all.
No News of individual stocks either.
"Where on earth was it acquired?" When asked, a company name unheard of from that person.
I immediately investigated.
A completely unknown, under the radar company.
The stock price movement is insignificant, and the dividend yield is lower than the acquired companies.
No matter how you look at it, it's 'inferior'.
To be acquired out of the blue as an 'inferior' company...
A rare experience, the first of my life.
When I mention this, everyone says, 'That's disappointing.'
But I didn't mind that much (truly thick-skinned... LOL).
I thought it was an extremely rare experience.
I thought it would be an interesting story to tell! (Actually, I'm using it as a story here).
The company I bought through NISA was acquired, became a stock in the OTC market of the acquiring company, and was transferred to a specific account.
Naturally, I sold it.
If a company is acquired by a higher-ranked company, the stock price will go up, but if it is acquired by a lower-ranked company, it's a different story.
There seem to be two ways of acquisition.
Acquisition from a 'higher-ranked' company results in the acquirer's stock price decreasing and the target company's stock price increasing.
Acquisition from a 'lower-ranked' company results in both stock prices decreasing (at this point, the acquisition had already occurred, so only the acquiring company exists).
In such situations, it is advisable to sell immediately based on the situation.
Do not be greedy.
Limit orders do not get filled, they just keep dropping slowly.
This can be said from experience.
It's rare, but if it helps, (bitter smile).
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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  • HONDA N-ONE : With a TOB, it's possible to buy without publicly stating "at what price you will buy."
    So the TOB was completed without buying in the market from individual investors?
    Was it a small company?

  • sirius2xanadu OP : No, it shouldn't have been that small, but it was sudden anyway.
    After all, the people at the securities company didn't know.
    However, even for that securities company, the News of individual stocks is not as detailed as Moo Moo.
    Rather, it may be slow, lacking motivation (laughs)... They might not have been able to keep up.

  • sirius2xanadu OP : I think it's a special case to be bought by a lower-ranked opponent if you add more details to it.