5 ms·

I wonder why anyone does trade that stock. Theories welcome.

• randomwalker 17y ago
  Greater fool theory? http://en.wikipedia.org/wiki/Greater_fool_theory http://en.wikipedia.org/wiki/Greater_fool_theory
• helveticaman 17y ago
  Supposition they'll get more money from the government in a continuous wave of "assistance for the next x months."
  • anamax 17y ago
    Supposition? Pretty much a guarantee. Do you really think that Obama and Dem congresscritters will let GM die on their watch? However, the UAW has gotten its first pound of flesh. The "new GM" is closing their best small car factory, the saturn plant, and will start building small cars in Michigan. It's only a coincidence that said plant is in an area with Republican congress critters. Note that the workers at saturn are covered by a standard UAW contract....
• ad 17y ago
  I just recently read an article that discussed this phenomenon. Took me forever to dig it up: http://www.bloomberg.com/apps/news?pid=20601057&sid=anOM5QMuepzA http://www.bloomberg.com/apps/news?pid=20601057&sid=anOM... in summary, many stocks go up after declaring bankruptcy, and it's probably due to short-covering. Edit: but then the next question is, why cover your short-sell at all if we know it is going to 0 eventually? It may be that they are trying to release their money tied up in 'margin' http://www.investopedia.com/ask/answers/05/shortmarginrequirements.asp http://www.investopedia.com/ask/answers/05/shortmarginrequir...