Dec 13, 2010
General Motors came out of bankruptcy by offering 478 million “common” shares in the new GM, and (4.35 billion) “preferred” shares.
Eighty% of those shares were sold beforehand, in large blocks, millions and tens of millions of shares each, to banks, mutual funds, hedge funds, sovereign wealth funds. The wealthy have money beyond belief, to snap up millions of GM shares – not to build vehicles, but to speculate.
Their speculation paid off as they bought their casino-chip shares at $33 in advance and then offered them for sale – and found other speculators who would pay $35 a share! Six% profit within one minute of the opening bell!
That’s the bare truth behind all the hoopla!