Random question about Investing

[Turbulent]

i think i might have asked the question in another thread but never got an answer.

anyway, let's say i buy shares in a public corporation (say 10 shares out of 1M outstanding shares). and then some bigger company who owns a major stake (say 51%) in it wants to take the company private so that their financial statements aren't available to the public. first of all, do they need to own 100% to go private or just 50% + 1 vote? second, let's say they only need a controlling interest, does the fact that i own shares in the company (as little as it is) entitles me to info about the financial statements?

 

[plushcarpet]

I believe that once the majority decides to sell, then you have no choice but to sell as well

check this for a little more info

How does privatization affect a company's shareholders? | Investopedia

 

[Turbulent]

I believe that once the majority decides to sell, then you have no choice but to sell as well

check this for a little more info

How does privatization affect a company's shareholders? | Investopedia

thanks for the info breh

 

[ill]

i think i might have asked the question in another thread but never got an answer.

anyway, let's say i buy shares in a public corporation (say 10 shares out of 1M outstanding shares). and then some bigger company who owns a major stake (say 51%) in it wants to take the company private so that their financial statements aren't available to the public. first of all, do they need to own 100% to go private or just 50% + 1 vote? second, let's say they only need a controlling interest, does the fact that i own shares in the company (as little as it is) entitles me to info about the financial statements?

The company can be taken private once they have enough votes for a majority (50.1%). This can be done through campaigning other shareholders or through purchasing enough shares to take a majority equity stake. If you are a minority stakeholder, you have basically no say in the sale. Some companies adopt "poison pills" which help prevent a hostile takeover (some outsider buying 50.1% to take over your company). Most companies roll with the buyout because its usually a premium over current capitalization. If you own shares in a company, you are entitled to their financials. However, most companies that are going private will force you to sell your shares so you may not keep your shareholder privileges.