I’m meditative of shopping General Motors unsecured holds GMS.
http://finance.yahoo.com/q?s=GMS .
It’s the down payment though trades similar to the elite stock, as well as it pays out $0.46 per entertain dividends.
It’s genuine poor right right away during $3.55 that is even cheaper than GM’s usual batch during $3.65 that pays no dividend.
So what’s the catch? When GM gets the second bail out will the debt get wiped out as well as the down payment be value nothing?
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that means your money is safe. some on bail out that company but your equity value get lost in that scenerio.
From what I know, in the case of default, since bond is a debt security, when the company is liquidated, you can still get a share of the sum of money. This is compared to the stock holders, where they are the last in the pecking order to claim from the sum of money, if there are any left after paying debtors.
This sure looks like a preferred. Are you sure it is not? Have they continued to pay the dividend or is it suspended? If this is a bond what is the coupon and maturity date? If it is a preferred and the divi’s are suspended you may be liable for taxes on the “phantom” income that you are not getting.