275 million GM shares changed hands on Friday. Who would have bought them and why? If GM goes into bankruptcy, aren't these worth ZERO? Are there some people out there thinking GM may be saved without bankruptcy, and they will be able to cash in? Please someone explain it to me..
Who bought the GM shares?
May 30, 2009
3 Replies
It all depends on what type of reorganization takes place AND what type of bankruptcy is filed.
If GM files Chapter 7 (not likely) the shares will be worth $0.00
If they file Chapter 11 (VERY Likely) it will depend on the reorganization plan.
The stock could be worthless. They could offer to trade the old stock for new stock at reduced levels. They could even do a direct swap for new shares. The old shares could be devalued but still traded as assets of the company.
With the Feds stepping in it will be interesting.
The Cracker Jacks folks bought the GM toilet paper as prizes. Mikey might have purchased two or three shares.
below $1; it costs less than a lottery ticket and might pay off afterall
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