Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

General Motors Company (GM) & American International Group, Inc. (AIG): Why These 2 Bailout Stocks Are Up Today

Page 1 of 2

U.S. stocks opened up this morning, with the S&P 500 and the narrower, price-weighted Dow Jones Industrial Average (INDEXDJX:.DJI) gaining 0.24% and 0.15%, respectively, at 10:05 a.m. EDT.

2 bailout babies mature
Call it a comeback! After yesterday’s market close, S&P Dow Jones Indices announced that it will add automaker General Motors Company (NYSE:GM) to the S&P 500 and the megacap S&P 100 index after Thursday’s close. GM will replace H.J. Heinz Company (NYSE:HNZ), which is being acquired by a group that includes Berkshire Hathaway. The index provider will also add another bailout stock, insurer American International Group, Inc. (NYSE:AIG), to the S&P 100. This is a big deal, particularly for General Motors Company (NYSE:GM) — $1.3 trillion in assets are indexed on the S&P 500. Little wonder the stock is up 1.8% this morning.

General Motors Company (NYSE:GM)

While American International Group, Inc. (NYSE:AIG)’s shares traded on the New York Stock Exchange throughout the crisis, General Motors Company (NYSE:GM)’s were de-listed after the company declared bankruptcy in June 2009. In November 2010, the company offered new shares to the public in one of the largest IPOs in U.S. history. However, the stock is roughly flat since then — in a roaring bull market:

General Motors Company (GM) & American International Group, Inc. (AIG): Why These 2 Bailout Stocks Are Up TodayGM Total Return Price data by YCharts.

Worse yet, investors have had to endure substantial downside swings without the sort of upside compensation that American International Group, Inc. (NYSE:AIG) shareholders have enjoyed. Indeed, AIG, has absolutely demolished the S&P 500 since the latter put in its low on March 9, 2009:

Page 1 of 2
Loading...