Whats happens with the stocks in case of a Company Sale?

Let's assume the following situation.

An investor buys 100'000 Shares at a Price of 1.2 $.

A few months later, he learns that the company gets sold for 2.2$ per share, and the share Price immediately jumps to 2.2$.

What does this mean for the Investor, what does he have to do in this case?

- Does he have to send a market order to sell the Shares? If yes, who is the counterparty, who is buying them?
- Or will the Shares be liquidated automatically at the sale Price and the Investor has to do nothing?

Thanks

It depends upon the terms of the sale but you don't have to sell prior to the close but I'd suggest selling in case the sale should fall apart before closing. Sales usually require regulatory approval so that's a risk. The shares will continue to trade normally until the sale closes so you can hold on & let the broker do the conversion when/if the sale closes.

Upon Closing:
For an "all cash" sale your shares will be converted to cash when the sale closes.
For a "cash & stock" sale your shares will be converted to partial cash & partial stock in the buying company stock when the sale closes.
For an "all stock" sale your shares will be converted to the buying company's stock when the sale closes.