How to Buy GM Stock
On July 10, 2009, General Motors Corporation, North America's largest automobile manufacturer, filed for bankruptcy. A new non-publicly traded company arose from the ashes, but stock in the "new GM," as of October 2009, remained unavailable for purchase by private investors. Meanwhile, the husk of the old GM remained in bankruptcy and changed its name to Motors Liquidation Company. As such, the stock has been delisted from the the New York Stock Exchange and is now listed on the pink sheets, which are used to trade "penny" stocks. Investors who want to buy stock in the "old GM," despite company management's warnings that the stock is ultimately likely to have no future value, can purchase it through a broker using the new ticker symbol. The company itself does not offer stock directly.
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Instructions
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Look up the new ticker symbol. As of October 2009, the "old GM" remained in bankruptcy. As such, it was not eligible to be listed with the major exchange houses. However, as long as it exists the company can be tracked on the pink sheets (PK). The symbol is MTLQQ.PK (Motors Liquidation Company).
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Research the stock. You can look up the price of the stock by typing the ticker symbol into the quote box for any of the major financial research sites like Yahoo! finance, MSN, or Google Finance.
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Determine the price of the stock and the price you want to buy it for. On Oct. 16, 2009, GM stock sold for 65 cents per share. Its price over the prior 52 weeks ranged from 27 cents to $7.15 a share. Determine an entry point and set up alerts to notify you when your price target hits.
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Contact your broker to buy or sell shares. Shares cannot be purchased directly from the company and must be traded through a broker who deals in pink sheet stocks.
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Contact Motors Liquidation Company's investor relations if you have questions about your stock holdings in the company. Email: info@motorsliquidation.com, or call (800) 414-9603 for specific details and forms.
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Tips & Warnings
Investing in bankrupt stocks is extremely risky. The management of Motors Liquidation Company has posted this statement on the company's website: "Stockholders of a company in Chapter 11 [bankruptcy] generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. In this case, management strongly believes all such claims will not be fully satisfied, leading to its conclusion that the common stock will have no value." Please see warnings by the federal Financial Industry Regulatory Authority in resources and consult an investment adviser before making a final purchase decision. I
