February 19, 2009
Why is the stock trading cost, lower than the aquization cost?
Satyam asked:
I am a stockholder for a company called eFunds (EFD), it recently got acquired by Fidelity for a individual cash purchase with each stock valued at $36.50, however the stock is presently trading at $35.33, even after the news came out. My question specifically is why does a cost disparity exist? Wouldn’t investors by at the low rate and then when the deal closes make a garunteed quick buck?
Terry

















