AUTOS: Cure for a Sickly Stock

Cure for a Sickly Stock

Since investors have lately lacked much confidence in General Motors, the company decided it was time for some major self-promotion. In a dramatic act to demonstrate GM's belief that its stock is undervalued, Chairman Roger Smith said the firm would buy up to 20% of its shares by the end of 1990. At current prices that would cost more than $5 billion, making the stock buyback the largest in corporate history. After the announcement, GM's stock spurted 3 7/8 points, to 79 1/2, before falling back a bit to finish the week at 77 7/ 8. The decision also sparked a...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!