General Motors Stock Symbol
November 18, 2010 by staff
General Motors Stock Symbol, General Motors (GM) began operations in and 35 in the New York Stock Exchange this morning, after an initial offering of shares and 33 per share. The Wall Street Journal has more on the unique situation of GM:
Unlike private company IPOs, where the owners are willing to sell at a deep discount to ensure a good jump on the first day, the U.S. Treasury, the largest owner of GM, was on a mission to get the maximum amount of your investment, which was funded with taxpayer money. There was concern that politicians and Wall Street is roasted to leave money on the table if the action is shot too high.
some of the money from the sale of common stock-flow at the automaker. Most stock-358 million, or $ 412 million with an over-allotment option, came from the U.S. Treasury, which took a majority stake in the company as part of a rescue plan financed by taxpayers last year.
Through the sale, the Treasury cut its stake to 37% from 66% and could drop up to 26% if the over-allotment and warrants are exercised. Is expected to further reduce its stake in the future monitoring of sales. Any future sales are subject to a lock delay of several months.
GM’s total sales of common stock and could reach 18.1 billion if underwriters to sell additional shares in an over-allotment, according to the Journal. That would make it the second largest IPO in American history, the newspaper says.
GM reduced market share gains modest gains, looming pension costs, and lack of effective internal controls of financial reporting that is too risky, Dow Jones writes David Weidner, who likens the current hype about the smell of excitement GM new car, but without the guarantee.
The same hype is good for the government, which hopes to recoup its losses and show that the GM rescue plan was the right decision. The government saved nearly 1.4 million jobs by the rescue of GM, according to The New York Times. A successful stock offering would be one of the biggest economic successes of the Obama administration. For the sake of taxpayers, let’s hope the GM’s IPO is not speculation.
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