{"id":10522,"date":"2021-11-19T16:00:47","date_gmt":"2021-11-19T13:00:47","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=10522"},"modified":"2026-05-26T10:54:35","modified_gmt":"2026-05-26T07:54:35","slug":"merger-and-acquisition-what-are-the-types-and-how-shares-react","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2021\/11\/19\/merger-and-acquisition-what-are-the-types-and-how-shares-react\/","title":{"rendered":"Mergers and Acquisitions (M&A): Types and Stock Reactions"},"content":{"rendered":"\n

No doubt, each investor is interested what happens to the company they put their money in after it goes through a merger or acquisition. What to do, especially with the shares<\/a> in your portfolio? Most importantly, what profit one will receive after such business events? This article attempts at answering these questions and giving some options of behavior in the case of merger or acquisition.<\/p>\n\n\n\n

<\/span>Mergers and Acquisition (M&A)<\/span><\/h2>\n\n\n\n

Merger is a process in which two or more companies take some economic actions to enlarge or expand their business. The abbreviation M&A stands for Mergers and Acquisitions. After the merger, a larger company appears in the market. The aim of the process is to make business more efficient, increase production powers, take over new markets, and create a full or partial monopoly.<\/p>\n\n\n\n

<\/span><\/a>Types of mergers<\/span><\/h2>\n\n\n\n

There are two main types of Mergers and Acquisition (M&A):<\/p>\n\n\n\n