General Motors’ stock rose the second day it traded as it rebounded from an early swoon.
The automaker’s stock climbed 7 cents, or 0.2 percent, to close at $34.26 on Friday, one day after it began trading on Wall Street again.
As trading began Friday, GM’s stock dropped $1.08 to $33.11 as investors sold it to lock in profits. But buying returned and lifted the stock until it passed Thursday’s closing price of $34.19 near day’s end.
As the stock fell, bankers who managed GM’s initial public offering probably asked their larger investors to start buying so it wouldn’t fall below Thursday’s IPO price of $33 per share, said Peter Henning, a law professor at Wayne State University and former attorney with the U.S. Securities and Exchange Commission.
A drop below $33 could anger customers who were persuaded to buy the stock in the IPO.
Associated Press
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