On the first day of General Motors Co. on the New York Stock Exchange, its shares went up by 3.6 percent amid heavy volume. Its shares closed at $34.19, signifying a $1.19 gain over its initial stock offering price of $33 a share.
Less than a year after emerging from bankruptcy, GM returned to public stock markets, helping pace a 173-point gain on the Dow Jones industrial average.
Trading began at $35 and climbed as high as $35.99 in early trading. The price gradually dropped in the day during heavy trading volume as more than 452 million shares traded hands.
According to Obama administration officials, the strong market debut for GM signifies that the government made the correct choice in restructuring GM with $50 billion in financing since 2008.
At a press conference at the White House, President Barack Obama said that the American auto industry, “the proud symbol of American manufacturing might for more than a century,” is rising once again.
He said that for the first time in six years, Ford, GM and Chrysler are all profitable. The trading of GM’s shares on the New York and Toronto stock exchanges wasn’t started off with the traditional ringing of the bell. Instead, the rev of a Camaro engine was heard through the halls of the New York Stock Exchange. [via autonews - sub. required]