Last November, the “new” General Motors held its Initial Public Offering and began trading at $33 per share, and eventually went on to touch $39.48 a share. As the market closed today, the company finished at $21.78 a share. Needless to say, it’s hardly ideal.
More than anything, it has a lot to do with America’s crawling and cautious economy that has been beating down on The General’s stock price. That, and manufacturing is usually the most effected industry when it comes to poor economic forecasts and stock prices.
What does this mean? As far as the U.S. Treasury is concerned, it means there’s as much as $15 billion to be lost if it were to cash out now with current trading prices, but there doesn’t seem to be any indication of that happening soon.
Source: The Detroit Bureau