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drunkenviking t1_ize5hzw wrote

Reply to comment by usmcplz in [OC] Largest IPOs in history by giteam

They almost went under, were bought by the US government in the recession, the government sorted out their finances, then went public again.


seakingsoyuz t1_izexa4i wrote

FYI the US government only bought 61% of the company; the rest was held by the governments of Canada and Ontario, the unions (UAW and CAW), and GM’s former bondholders.


lawschoolquestion34 t1_izeze38 wrote

Typically anything over 50% is considered “ownership” given the control that often comes with such a big chunk of a company.


finite2 t1_izfl54r wrote

That's not really true anymore in corporate America though is it? Shares with 10x voting rights, share with no voting rights etc...


lawschoolquestion34 t1_izfqmjc wrote

Those rights aren’t typical for the Fortune 500. Usually found in public former startups like Facebook with powerful founders or investors-turned-owners. Certain rights associated with preferred stock etc. certainly exists but what you’ll see with voting power at Facebook is far and away the exception to the rule.


drunkenviking t1_izf1bkz wrote

Sure, but the US government had enough ownership power to make any decisions unilaterally. The other players owned a chunk but were essentially toothless.


spongesking t1_izg7mmp wrote

Not true. Stocks are divided into preferred and common stocks. The difference is that preferred stocks don't have voting rights; common stocks do.

I know the US government bought preferred stocks, but don't know how much. So, this could imply the US government wasn't the "true main shareholders".


drunkenviking t1_izgs0fu wrote

I assumed that the other person knew more than I did, hence the response I gave. (Which was probably dumb of me!)


spongesking t1_izh2i3b wrote

No problem, just clarifying, because usually reality is more complex.