General Motors seeks 1 for 100 reverse stock split

GM (1.60 at time of entry) is seeking a reverse stock split of 1 for 100. You may well know by now that GM hasn't been doing too well if you've paid any attention to the media. If you are unfamiliar with stock splits (or reverse stock splits) what this means is that for every 100 shares that you own you will now own 1 (example: you own 1000 shares before the reverse split. You will own 10 after the split).

What this will try to do is make the company appear to be stronger than it really is by boosting the stock price from 1.60 to $160 per share (1.60X100). I can see why they would want to increase the price per share, but who would want to pay $160 per share for a company that just filed for bankruptcy?

The entire story can be found here