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Subject:
bank shares
Category: Business and Money Asked by: peewee409-ga List Price: $10.00 |
Posted:
12 Mar 2006 18:20 PST
Expires: 11 Apr 2006 19:20 PDT Question ID: 706555 |
if you own bank shares can the bank force a person to sell those shares |
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There is no answer at this time. |
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Subject:
Re: bank shares
From: pcarney123-ga on 14 Mar 2006 12:48 PST |
No company, bank or not, can force you to sell your "common" shares, unless you're talking about a merger transaction, in which case, yes they can. Like if they announce they're going to be acquired then yeah you'd have to sell. If you're talking about prefered shares, which you most likely are not, it will depend on the terms of the original offering. Hope that helps. |
Subject:
Re: bank shares
From: riskarbitrage-ga on 23 Mar 2006 21:21 PST |
You need to look at the articles of incorporation for the bank (or any company). In some industries (like gaming), it is illegal for certain people or entities to own shares in the company (or over a specified amount of ownership). This would be disclosed in the articles of incorporation. Other times, the shares may be callable (look at Dreyers and Nestle) and the company will have the option to force you to sell the shares. Sometimes, depending on which state the company is incorporated in, you can ask for appraisal rights if there is a merger transaction and you are not happy with the terms of the merger consideration. In this case, the proxy would disclose the rights you have (if any). |
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