Skip to content

GM IPO: Today is the day investors got screwed!

November 19, 2010

Today is the day new GM IPO shares are traded at $33 per share. People are buying because they don’t understand behavioral economics and that gives the new GM a misleading boost from 75 cents per share to $35 (5000%). People who hold the old GM stock call FINRA (Financial Regulatory Authority) of the federal government to find out what’s going on..

“Can I cash my old GM shares at 75 cents from before the bankruptcy for the new GM shares?”

” No you can’t. Your old shares are worth between 6 and 88 cents on the penny stock exchange.”

“That is confusing.”

“We are sorry. The law says that share holders are the last to be paid when a company in the United States files Chapter 11.”

“Then GM didn’t really go up by 5000%, it is only stated that way in the stock exchange to lure buyers. It hurt our feelings.”

“Sorry.” And a wee voice says, “Middle class investors, today you got screwed, time to get savvy, GM closing at $34 is a dismal 3% earning for an IPO. Americans don’t trust the new GM, learn the ropes, there is plenty of money for you outside the GM manipulative bankruptcy. Get savvy about behavior economics.

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: