GM stocks open on the New York Stock Exchange
Workers place a new banner on the front of the General Motors world headquarters complex that proclaims its return to the New York Stock Exchange (NYSE) November 18, 2010 in Detroit, Michigan. GM returned to selling its newly issued stock to the public today as they resumed trading on the NYSE. The stock sales are expected to generate approximately $23 billion for General Motors.
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JEREMY HOBSON: Now to the GM IPO. Shares of the automaker went up for sale on the floor of the New York Stock Exchange about 20 minutes ago for the first time since GM filed bankruptcy in June of last year.
And Marketplace's Stacey Vanek Smith is here with the latest. Stacey, where are GM shares trading right now?
VANEK-SMITH: They're at about $35 a share, which is $10 more than analysts had predicted just a few days ago.
HOBSON: Now, to be clear, taxpayers still do own some of the company, right?
VANEK-SMITH: Yes, we own less of it. The government off sold a bunch of shares in this IPO, so our stake in GM has gone from about 60 percent to about 25 percent. We did lose a little money in the sale -- about $4.5 billion. The government sold its shares for about $33 a piece. It bought those shares for $44 last year. To the bailout money back now, the shares we still own in GM would have to get to $53 . I asked Mark Zandi with Moody's Analytics if he thought that would happen.
MARK ZANDI: The auto bailout will probably cost taxpayers some money, that's only because we are impatient investors. If we held onto GM stock for longer, I think we would do well and at least be made whole.
The government says it won't sell any more GM shares for about six months, but after that, Zandi thinks the government will sell its shares quickly because it wants out of the car business.
HOBSON: Stacey Vanek Smith here in New York, Thanks Stacey
VANEK-SMITH: Sure thing.