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How are acquired companies dealt with?

My algorithm is setup to buy stocks and then sell them one year later. I've just found that the algorithm buys a company called Advanced Neuromodulation Systems in 2005 which was subsequently acquired by another company. I assume that at this point the stock symbol was removed from the exchange.

So the result is that my algorithm never sells the stock.

Is there some standard way to deal with this? or can somebody suggest a solution?

Thanks a lot

1 response

When a company is acquired, by default the position is maintained in your portfolio during the backtest. If you want to remove it and receive the cash buyout, you can use code similar to the examples in this thread: https://www.quantopian.com/posts/when-a-company-gets-acquired-my-portfolio-still-owns-shares-of-the-original-company-is-that-right

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