Price: Control Premium and Mind Price

price: It all starts with a control premium, according to Market Watch. When we purchase shares of a stock, we pay a price that is within pennies of the last trade. An old Wall Street adage comes to mind Price is what you pay, value is what you get. When a company is acquired, the purchase price is negotiated during long dinners at fine restaurants and comes with a control premium that is higher than the latest stock quotation. Both buyer and seller need to feel that they are getting a good deal. How much above Acquisitions have the elements of a zero sum game. (news.financializer.com). As reported in the news.