Enthusiasm for GM
The American auto company dubbed “Government Motors” ever since its bankruptcy and bailout with federal dollars took a significant step Thursday toward becoming a private entity once again. Shares of General Motors were traded at the New York Stock Exchange, and the initial public offering was met with solid investor enthusiasm. Shares that opened at $33 apiece quickly rose to near $35.
All this is welcome news for what was once the largest private corporation in the world, and also for U.S. taxpayers.
It doesn’t mean taxpayers have been fully repaid for the billions of dollars they contributed to keep the auto giant afloat. While roughly half of the government stock in GM was to be sold initially, stock prices will have to nearly double before the second half is sold to completely repay taxpayers, one analyst said.
Still, even if its stock didn’t take off like a supercharged Corvette, we’re happy to see that GM is moving steadily on the roadway to becoming a self-sustaining private corporation once more.