“With the news that the GM IPO was happening, we did some Internet searches and realized there continues to be confusion about the stock of old GM,” said Gerri Walsh, Financial Industry Regulatory Authority vice president.
Walsh said she saw posts from investors asking what would happen to their stock after the IPO. Others asked if they would be able to cash in on the new offering.
“The answer is no,” Walsh said. “People have to recognize purchasing or holding stock of a bankrupt company is speculation and you can lose all of your money.”
If this is your story you are last in line to be paid. GM has noted that none of the publicly owned stocks or bonds issued by the former General Motors Corp. will become securities in the new GM.
