Stocks, a qualcomm buying atheros, who should you invest in?

The acquired company’s shares are generally converted into shares of the acquiring company. In terms of a short term investment, I don’t really see the benefit of purchasing the acquired company.

Usually by the time an announcement gets out to the public about a buy-out of one company by another, the rumors have already driven up the price to nearly the offer price already, so that by the time the public announcement is made there is no more premium to be gained by buying the ‘to be acquired’ company. And if you made large purchases prior to the public announcement, based on the rumor, then you’d very likely have to respond to a serious investigator from the Securities and Exchange Commission about how you acquired your knowledge, to determine if an ‘insider trading’ rule was broken or not.

awsome thanks. so atheros was at 44 and was bought out at 45… but its still only 45.56? i would think it would go right up to 44.99? but qualcomm has gained quit a bit. thanks.