GM- Government Motors
GM, otherwise known as Government Motors, is set for an IPO (initial public offering) next week. If you don’t know about IPO’s check out this post for a primer!
Now those of you living overseas-may not be aware that the US of A (you and me) has a 50 billion dollar stake in the company!
There is some debate about whether the IPO is a good investment, but you and I will never get the chance to put our money at risk.
It really gripes me that:
- The “public” owns a large portion of the company
- The Obama administration has been anti-big-business this election year-calling corporations and hedge-funds evil
- The unions got a sweetheart deal in the negotiations to save the company, for obvious reasons!
But the general investor, the average US citizen, AKA you and me, are completely shut out of the IPO process! Now I realize most IPO’s follow the same formula, the big boys get first dibs-this ain’t my first rodeo.
But I would think that with the taxpayers holding a large stake in this company, efforts would be made to give “the little guy” the administration talks about wanting to help so much-a chance at this investment.
This would be a perfect time to show it!!!
Institutional Investors and GM IPO Shares
But NOOOOO, the only people being offered shares are big institutional investors and investment banks-with less than 20% going to “the general investor” and you can bet that is only to the biggest customers of the biggest brokerages!!!
And the latest news is that China and Qatar, among other foreign countries are being offered a large stake in the company.
What other option is there?
What about a Dutch Auction a la Google in 2004. That seemed to work pretty well, and gave the average person a chance to get the stock at the IPO price.
I am not a conspiracy theorist, and am all in favor of big and small being able to make a buck-but a level playing field on occasion would be nice….
What say you, are you happy that your taxes are being used to make the big players of the world more money?
The Millionaire Nurse Blog
We have been fortunate here at The Millionaire Nurse Blog to be featured in the following places:
A guest post by Julie RN, our staff writer at Emergiblog-about the risks of too much overtime for nurses!
Len Penzo .com’s weekly Black Coffee update!
And Not Made of Money’s Cup of Tea Round-up… It’s not just docs and nurses who live on caffeine, but personal finance bloggers too!
And Don’t Forget that my course The 5 A’s to Financial Health will be open soon-check these video’s out for more info!