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>If all that were to hit the open market at once at any time, the price would plummet.

But the price doesn't plummet when an attempt to acquire a company is announced.

The price plummets when the holders of many shares want to sell. An attempted acquisition is the opposite of that situation.



Right, of course. My point is that the acquisition premium is actually higher than the nominal premium.

The share price is for the current share supply. If the supply increases, then the price goes down.

There is also a confounding effect in the cases where shares have actually flooded the market, where the confounder is whatever the reason for flooding is. But even if you magically forced a mass sale with no negative event causing it, the price would still plummet due to the supply flood.




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