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Tina is new to investing. About six months ago, after doing some research into both Perio and Lewisohn, two mid - size publishing houses, she
Tina is new to investing. About six months ago, after doing some research into both Perio and Lewisohn, two midsize publishing houses, she decided to purchase stock in Lewisohn. This week, the two firms announced that Perio will be acquiring Lewisohn. What might be a wise next move for Tina?
Sell her stock, since the price probably fell once when the merger was announced.
Purchase more stock, since the price probably fell once the merger was announced.
Hold on to her current position in the stock, since she can expect better returns than her original research indicated, but don't purchase any more until she gets better indicators of where the company is headed.
Sell her stock, since shareholders of the acquired firms typically earn returns that are close to zero.
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