General Motors Announces Odd-Lot Reduction Program for Stockholders

Strategic Insights -

General Motors Corp. has unveiled a voluntary program designed to simplify the trading process for its stockholders who hold fewer than 100 shares of its common stock. The "odd-lot reduction" program allows these investors to either sell their shares or purchase enough shares to reach exactly 100 shares within each of the company's three classes of common stock. This initiative aims to reduce GM's annual servicing costs associated with managing these stockholder accounts.

Key Takeaways:

  • The odd-lot reduction program is open to General Motors stockholders who own fewer than 100 shares of its three classes of common stock.
  • Stockholders can either sell their shares or purchase more shares to reach exactly 100 shares within each class.
  • The purchases and sales will be made at a market-based weighted average price per share.
  • A $0.75 per share processing fee will be assessed for shares sold or purchased.
  • The program expires on September 25, 1995, unless extended by GM.
  • Stockholders can call 1-800-736-1665 for more information.
  • The program is expected to reduce GM's annual servicing costs.

Statistics:

  • The program is open to stockholders who own less than 100 shares of GM's three classes of common stock.
  • A $0.75 processing fee will be charged per share sold or purchased.
  • The program expires on September 25, 1995.

Sources:

  • General Motors Corp. (NYSE: GM)
  • PRNewswire (August 21, 1995)