Detroit Business Daily

while the government is backing up GM why the stock value go zero?

We all know that the U.S government is backing GM financially, so why GM stocks go to zero if there is financial back up?

Public Comments

1. The same reason people do not invest or put stocks on people with food stamps or government aid. It's the same thing.
2. The GM stock will sink to .35 cents (today at .75) and hold there till GM produces a car that will sell, and then the stock will rise on profit predictions.
3. As GM enters bankruptcy common stock shareholders will most likely loose 100% of their investment, much as the bond and preferred stock holders that paid a premium for better protection in case of bankruptcy. As GM emerges from bankruptcy, they will offer a new public offering, but still, the likelihood of the new stock being a good investment is dubious since 85% of the company is owned by 2 federal governments and the company's labor union. The SEC should have closed GM for trading several months ago.. My guess is that they didn't to allow shareholders to sell their investments, rather than for new investors to buy.
4. Please follow this Y!A link for the answer: GM Post #56, 06-01-2009 "Would it be a good idea to buy GM stock now? Under the assumption that GM will make a comeback." Note: GM is in a "LEGAL PROCEEDING." http://answers.yahoo.com/question/index?qid=20090601191551AAlitXz GM Post #53, 06-01-2009 - VERY DETAILED Answer. "Would you buy GM stock right now?" http://answers.yahoo.com/question/index?qid=20090601142238AATON23&r=w#BaN_M2D0AnhGUqjJm65y This is GM post #59 <06.01.2009>
5. because GM is worth less than zero