Stocks Question

[Nashville]

Now that Sea-Tax has been resurrected from the dead, a good question for him, or for anyone else who knows.

The classic pre-emptive rights of a stockholder, as we were taught in school have become a joke, as one-by-one, the state securities regulators have allowed the big corporations to bulldoze small shareholders because they don't want to have a minority interest.

What if someone bought a stock in Rag-Tag Dog Food, and received a stock certificate. Then along comes a leveraged buy-out from Mega-Glob International Foods. Fifteen years from now the owner of a stock certificate presents the document for redemption.

What happens? Does the holder of the certificate enjoy 15 years worth of growth??

[sea-tax]

Good question , the answer is I don't know, never had this happen. I would surmize that it would fall to what ever the State securities law says from that state. I would guess that the liquidation of the stock took place without your clients knowing and the funds were turned over to the state for safekeeping.