Stock Mergers

Q. What should I do if a stock in my portfolio has announced a merger?

When mergers or similar corporate activities take place it can have a variety of impacts and often times the stock may even stop trading whilst the actions conclude. This presents a degree of uncertainty in relation to what the stock may look like in the future and as such it’s a risk that we’d try to avoid. So the easiest way to avoid that unknown is to sell out of the position once those corporate actions have been announced. (A recent example of this occurred with TPG and SAR)