Question

Use the GM’s Bankruptcy discussion thread to discuss the fall of the largest automobile manufacturer in the United States.

When GM declared bankruptcy what happened to their shares of common stock? Could you purchase shares of GM stock when they were in bankruptcy? What was their stock value prior to declaring bankruptcy and what is their stock trading at now that they are out of bankruptcy?

Answer 1

When GM declared bankruptcy, the share price of common stock was traded on below $1 and closed at 75 cents, down upto 33 % from Prior day closing price of $ 1.12.

After declaring of Banckrupcy by GM, the trading volume of share was in huge volume in excess of $ 1 and every body known the fact that share book value will be nil after paying all the payable amount of Creditor . Despite share was trade in high volume wat more than $ 1 represnt that the faith and positive expectation of investor on Company and management .

Hence, I would definatily invest in the GM motor.

One prior Closing price of GM before declaring banckrupcy was $1.12.

Cuurent Share Price of GM is 44.07 , which show good return to investor who trust on the company.