• Oct 12th 2010 at 3:58PM
  • 11
General Motors is getting ready for its Initial Public Offering, which is expected to occur later this year. Ahead of that, GM has announced that it will offer nearly 600,000 employees (current and retired) and dealers the opportunity to purchase stock at the opening IPO price.
According to The Detroit News, the minimum required investment will be $1,000, and to qualify for this program, interested parties must respond by the end of this month. Once the IPO has been announced, potential buyers will then have four business days to purchase stock at the opening price. The program is being administered by Morgan Stanley. GM has not specified maximum and minimum share limits for this program.

[Source: The Detroit News]

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    • 1 Second Ago
      • 4 Years Ago
      Great. If you can't sell it to dumb buyers then push it on the lame.
      • 4 Years Ago
      Offering stock? I don't think too many would want to invest in GM. They have no innovation and their cars suck. I don't think they have introduced direct injection yet.
        • 4 Years Ago
        Kalamaloo..your insight is very informative..you don't even know that GM HAS HAD DIRECT INJECTION FOR OVER 3 YEARS!! I am glad that you are so on top of quality when you don't even investigate anything before making a statement on a website that is obviously wrong.
      • 4 Years Ago
      The issue is whether the employees will be barred from selling their shares for a certain time period.

      Computerized trading programs may run the share price up 50% in the first few days only to enter into a short sell at the top of the pre-programmed limit to maximize profit on the way down to the opening price. Before the IPO you'll see tons of stories and BS from Cramer touting GM as a potential $150 stock.

      By the time the employees who bought stock can sell it the share price might be far below the IPO. That is the way the stock market works. The little guy gets used to prop up the price so the big guys can book profit and let the small time investor take the loss.
      • 4 Years Ago
      It's a trap!
      • 4 Years Ago

      Someone else can have my place in line.
      • 4 Years Ago
      Having availed myself of a Friends and Family package like this for a small tech company's IPO years ago, I find this interesting.

      Up to 600,000 buyers at a minimum of $1K is bound to be useful in supporting the offer price, and for those that could afford to lose it, it's got some potential. (Yes, potential to be worthless, too, but that's the stock market, kids.)

      They're certainly not doing this just out of the goodness of their hearts, but it's still a nice gesture to not restrict the initial price action to only the biggest investors.

      All that said, I would check the fine print to see if there are any restrictions on how quickly these shares could be sold. Could be a decent profit if you dump them within the first week.
      • 4 Years Ago
      I wonder how much of GM will end up in foreign hands.
      • 4 Years Ago
      AB your writer states in the article, "the minimum required investment will be $1,000," and then the writer states, "GM has not specified maximum and minimum share limits for this program." Sloppy, sloppy editing, if any.
      • 4 Years Ago
      If you wait about five to ten minutes after IPO begins, anyone with a brokerage account will be able to buy as many shares as desired at significant discount to the offering price.

      • 4 Years Ago
      Your career is tied to GM's success and now your savings are tied to their success. What could possibly go wrong?!?!?!
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