Dow Jones plummets

[DREDIOCK]

Just wondering.
What would happen if someone bought stock in a bank like say Wachovia right now. And held it.

And if Wachovia got sold.Say to.  as a hypothetical, say a company named "Wegotbucks International"  what would happen to that Wachovia stock?
Would it just be passed onto the new owners.

I guess what Im asking. Is what about a company that doesnt go out of business but gets purchased by another company.
What happens the stock someone might have in that original company?

If it just gets passed onto the new company
Then isnt now one of the best times to buy stock?

Provided of course you can guess which companies arent going to go under?

[sluggish]

Just wondering.
What would happen if someone bought stock in a bank like say Wachovia right now. And held it.

And if Wachovia got sold.Say to.  as a hypothetical, say a company named "Wegotbucks International"  what would happen to that Wachovia stock?
Would it just be passed onto the new owners.

I guess what Im asking. Is what about a company that doesnt go out of business but gets purchased by another company.
What happens the stock someone might have in that original company?

If it just gets passed onto the new company
Then isnt now one of the best times to buy stock?

Provided of course you can guess which companies arent going to go under?

Thia is how the market is supposed to work.  How it used to work.  You gamble with a company that shows potential.  If enough people see that same potential as you and invest in that company like you, then the company gains investmant leverage that allows it to pull ahead of its competitors.

What we have seen in the recent past is people getting rewarded for making poor investment decisions.

We should consider this the "Ulmighty Cleanse."

[BTW]

Everybody knows the DJ average and how much it fell today.

How many people know the Price/Earnings ratio of the Dow today as compared to September 2000?

[john9001]

it all depends on the deal, google is your friend.

Citigroup's strategic acquisition of Wachovia will make Citi the largest U.S. bank by total deposits. But what will it do for Wachovia customers and shareholders?

Wachovia plans to sell its retail bank, corporate and investment bank, and wealth management businesses to Citigroup. The transition for customers should be seamless, the company said in a press release: "Customers of both companies should continue banking as usual and feel confident that their deposits are secure." The FDIC also assured continuity of service. It's unclear whether Wachovia will operate under its own name or the Citigroup name, the Atlanta Journal Constitution points out.

Shareholders of Wachovia's stock won't be wiped out in this deal, unlike shareholders caught up in the Washington Mutual buyout. Wachovia will remain a public company with two main businesses: the AG Edwards brokerage and Evergreen Asset Management (which includes Evergreen mutual funds). The company will remain headquartered in Charlotte, N.C.

Wachovia shareholders aren't in a good spot, however. The company's stock (symbol WB), which closed at $10 on Friday, was halted on the New York Stock Exchange this morning after it plunged more than 90 percent in premarket trading.

The deal is expected to close before the end of the year, pending approval by shareholders and regulators.

[bsdaddict]

it's barely lower than it was on the 18th, all that happened was Washington did the unexpected.  Wall St. had placed their bets that a bailout would happen, it didn't so the market corrected...  I might see reason to panic due to other reasons, but this drop isn't one of 'em...

[DREDIOCK]

I was using Wachovia as an example because thats who I have my business account with.

I personally dont own any stock.
Bout the closest I come to owning stock in anything is a Vanguard account.

I also used them as an example because I get this gut feeling we havent seen the last of Wachovia.

Which led me to the question in general.

I just cant help but get the sense that among all the gloom. There is a real opportunity to be had here somewhere.
wherever there is disaster. There is also an opportunity to take advantage.
The question is. Where?

[Grape]

I started digging my bunker...

[Mr No Name]

How How?? Enquiring minds want to know?

He was a farmer and had land, livestock and seed... He maximized what he had and swapped some of that livestock and food for more land which he planted... and so on, and so on, etc...

[john9001]

i have 12 acres zoned agricultural, i may have to become a farmer. Crops, pigs, chickens.

[Mr No Name]

i planted a small garden (1/2 to 3/4 acre) and thinking about chickens and turkeys...

[BTW]

I was using Wachovia as an example because thats who I have my business account with.

I personally dont own any stock.
Bout the closest I come to owning stock in anything is a Vanguard account.

I also used them as an example because I get this gut feeling we havent seen the last of Wachovia.

Which led me to the question in general.

I just cant help but get the sense that among all the gloom. There is a real opportunity to be had here somewhere.
wherever there is disaster. There is also an opportunity to take advantage.
The question is. Where?

you're right, when the DJIA gets down below 8000 BUY!

[kamilyun]

Hmmm, if this ends up like anything like the Great Depression...

We'll need a really good war to get us on the road to recovery!

[Mr No Name]

I suggest China to start.

[Toad]

I think now that the attempt to railroad a Bullshirt Bailout for the Richie Rich guys has failed, cooler heads will prevail and a deal that actually might help resolve our current problem.

As Kansas Congresswoman Boyda wrote:

I voted against the bailout.  The vote failed 228 no to 205 yes.  I know we face turmoil in the markets, and we need to do something to stabilize them.  I spoke to many economists this past week.  And every time I asked the question, "Do you think this will work?" they look away. They actually break eye contact with me and come back and say they're not sure.  I'm not asking for a guarantee, only "Do you think it will work?"  And not one would say they think that this will work. What every economist agrees on is there are several other options that have a higher probability of success at less risk to the taxpayer.

 

This bill tried to solve our economic problems from the top down, instead of the middle up.  Four hundred economists, including three Nobel laureates suggested we slow down and get this right.  It was widely agreed there are other and better alternatives for dealing with this situation. 

Don't slash your wrists just yet simplyl because the brazen attempt to pick your pocket in broad daylight failed. There are serious people working on a serious and much more fair solution to this problem.

[kamilyun]

I suggest China to start.

Not a chance.  Who will provide us with cheap, disposable electronics and other assorted junk? 

If you think this is an economic crisis, wait until the shelves at Wal-Mart are empty.  Panic on the streets!