Investors buy up worthless GM shares - Business Times Monday 13 July
Shares in "General Motors", the company says, are worthless. But many investors apparently have mmissed the message.
GM's stock, which now represents the company's bankruptcy estate, continued an improbable rise in price on Friday, prompting concern by company officials and securities regulators that investors are confused.
The stock, which trades under the ticker symbol GMGMQ, gained as much as 43% on Friday, after GM announced that it had completed the sale of its assets to an entirely new company.
From this, one can be reminded again that share prices are simply a gauge of market sentiment towards a certain stock, and money can still be made and lost despite the intrinsic value of a company like GM becoming nearly zero. A good lesson is to never buy stocks that you are unclear about, and this is a mistake that I had made once, buying the shares of Bankunited Financial without having sufficient understanding of the company's current status. It was quite an expensive lesson, but I'm glad I made this mistake early in my investing journey.
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