Company going private, stock ?

This happens. However, it does not come without risk.

The market values the company at $17.39 per share. What happens to investors that buys a million bucks at $18 and then the sale falls apart?

It's not easy money.

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Stock is $17.39 right now. Investors have put in a $21 per share bid to buy company. If offer is accepted, everyone will have sell all their shares at $21 each. So what’s stopping someone from buying as many shares as possible at $17.39 right now, then profit if company is sold?

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In this case the price will probably move to about $20.90 pretty quickly and then sit there until the deal closes or falls apart.

Reminds me of this ticker PQEFF. It was trading for around $0.15-0.20 and some company was trying to buy them out for $.50 or so. Done deal, guaranteed 2.5x your money.

Then the purchase deal fell apart and the stock price that had run up to the $.40-50 range plummeted down to nothing.

ETA: point is that it ain’t a guaranteed way to profit and you can lose your arse off if the deal doesn’t end up going through

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When a company has a bid to be sold, what stops rich people from buying a ton of shares and profiting if company is sold?

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Risk management.

Deals fall apart all the time.

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If offer is accepted, everyone will have sell all their shares at $21 each. So what’s stopping someone from buying as many shares as possible at $17.39 right now, then profit if company is sold?

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You have to have somebody willing to sell you shares at $17.39. There’s not unlimited shares for you to buy.

The reason it’s probably at $17.39 is the risk of the deal not going through. So you can take your $17.39 a share now or risk the deal not going through.

Your potential return is also pretty much capped at the price they’re buying you out for. So say the stock rose to $20.5 a share before the sale. You are topped out at a gain of 50 cents. You might be able to get more than that elsewhere.