General Motors to offer stock options to employees

Patrick Rall's picture

General Motors will be issuing their initial public offering (IPO) sometime later this year but before the public gets to tear into the fresh GM stock, over 600,000 company employees, retirees and dealerships will get a chance to grab some company stock at the IPO price.

To qualify for this GM IPO stock option program, prospective investors must meet the minimum investment requirement of $1,000 and they must register through mail by October 19th or online by October 22nd. General Motors has not stated what the minimum or maximum number of shares purchases will be but with the IPO expected to happen in November or December, the company will probably offer a little more information down the road; presumably when the IPO date is announced.

Once the GM IPO pricing is announced, registered employees, retirees and dealerships will have four days to purchase their desired shares of GM stock. This allows over 600,000 General Motors workers a chance to own a piece of the company that employs them without having to go through a brokerage firm.

GM IPO stock prices are expected to rise quickly

If you are a General Motors employee who would like to own a small piece of the company don’t delay in registering, as you only have about 10 days. The way that this works, for those unfamiliar with the stock market, when the first day of trading begins for the General Motors stock offering shares will be introduced at a certain price point. Once the opening bell rings and the ticker tape begins to fly, the price of GM’s IPO stock will likely rise quickly but if you are part of the GM IPO employee stock option program, you will be guaranteed your desired number of shares at the opening price.

According to the Detroit News, the people who are eligible were sent a letter today with more information so if you are a current or retired GM employee, look for the letter in the mail later this week.

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