General Motors’ announcement of a new capital allocation framework resulted in a 3 percent increase in the value of its stock. At the close of the stock market in New York on Monday, March 9th, GM shares rose to $37.66 per share.
The capital allocation framework establishes guidelines to return money to investors and committed former Obama auto task force member Harry Wilson to relinquish his bid for a seat on GM’s board of directors, as GM’s board approved a $5 billion stock buyback program.
GM’s shares gained 7.9 percent year-to-date March 9th, 2015. The gain is slightly higher as GM’s stock continued to creep up to $37.78 per share, up $0.23 per share, at market close on Wednesday, March 11th. GM finished the day with a market capitalization of $60.47 billion.
Monday’s value gains also brought with it higher trading volumes for GM shares. Whereas the automaker’s stock has a regular range of between 200,000 to 1 million trades per day on the New York Stock Exchange (NYSE), trading volume spiked to nearly 4 million shares on Monday, demonstrating that investors were indeed paying attention to GM’s move and took it as favorable news.