I just received an exchange offer via Schwab for one of my best performing securities (currently my G/L% is 309.03%). I have 10.55 shares, price is currently $79.35. I’m having trouble parsing what the options mean:
1. Standard Election: For each security $49.50 cash and 0.324 shares of Choice Common Stock, subject to proration
2. Cash Election: An amount in cash equal to the equivalent market value of the Standard Election Consideration, subject to proration
3. Stock Election: a number of shares of Common Choice Stock having a value equal to the equivalent market value of the Standard Election Consideration, subjection to proration
4. Decline
I’m not sure which option would be the best. I know that there’s a risk that the sick price might dip when there’s a buyback, but my intent was to hold on to the stock for years so I could easily ride it out. Any thoughts on the matter would be appreciated!
