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But that was at the height of the financial crisis, that doesn't apply to gm stock today

• lotharbot 13y ago
  It doesn't apply to the amount of gm stock an individual investor might hold, but it does apply to the amount of gm stock the government holds. Putting 26% of the company on the market would qualify as a spike in supply, and would distort the price.
  • yetanotherphd 13y ago
    I didn't see any price spike
    • lotharbot 13y ago
      I didn't say "price spike", I said "distort the price". There is no question that the government's large stake in GM -- and their desire to unload it over the next 6 months or so -- means that there is some degree of "oversupply" of GM stock. Investors, whether buyers or sellers, have to factor that into their decisions regarding GM stock. I'm not convinced that the market for GM stock is sufficiently liquid to mitigate that.