What happens to the stock when one company takes over another?
Hey gang, I had 50 shares of Pixar (PIXR) stock, and that company was recently acquired by Disney (DIS). For each share of PIXR I had, I now have 2.3 shares of DIS, or 115 total. Here's my question, though. The PIXR had made a pretty big jump in price during the time I had it. So when it comes time to pay my 2006 taxes, will I have to declare that PIXR gain as a capital gain? Or will that get deferred until I sell the DIS stock sometime down the road?