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What is the impact of mergers and spin offs on shares?

Mergers and spin-offs can have various impacts on your shares, depending on the specific details of the corporate actions involved.

Mergers

In a merger, where two companies combine to form a single entity, you will receive shares in the new, combined entity in exchange for your old shares if you are a shareholder of the acquired company. The value of your new shares will depend on various factors, such as the relative valuations of the two companies, the terms of the exchange ratio, and the overall market conditions at the time of the merger.

Spin-offs

In a spin-off, a company separates one of its divisions or subsidiaries into a new, independent entity. You will receive shares in the newly created company if you are a shareholder of the original company. The value of these new shares will depend on various factors, such as the market conditions, the new company's strength, and the spin-off terms.

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