How to Make a Profit on General Motors Stock?

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General Motors is the largest American automotive corporation.  The company was the world’s top automaker for 77 years, till 2008 when it was left behind at first by Toyota and then by Volkswagen.

In 2011, General Motors got back the status of the world leader again but the next year this status was lost.

stocks-General-MotorsThe company was founded on September 16, 1908 in the United States. Initially, William Durant’s company headquartered in Flint, Michigan and later its head office was shifted to Detroit, the capital of American automotive industry.

In 2009, the company had the worst financial results since its records began. On July 10, General Motors was renamed into Motors Liquidation Company, and а new company named as General Motors Company was established.  

The company’s stock is listed on the New York Stock Exchange under the ticker GM.

To trade General Motors stock successfully, an investor has to follow the automotive market news routinely.  You can follow the company’s up-to-date news on the official website:

http://www.gm.com/ 

Also, you can find the company’s financial results, mergers and acquisition reports, important data on sales, strategies, future plans, pre-booking etc. on the official website, in the investor section:

http://www.gm.com/company/investors.html

To sustain a rise in General Motors stock, the company needs to constantly increase its market share. The company’s engineers have to invent products that have competitive advantages in the American segment. The company’s business affects its stock quotes, and the stock quotes also have an impact on the company’s stability.

stock-General-MotorsToday, General Motors stock is considerably affected by the political situation in the United States. This is because the Federal government holds 26 per cent of the company’s stock. Since the stock was bought, the price of the stock fell significantly. And this is why, according to American analysts, the U.S. government under President Barak Obama will not sell it.

If the government takes a decision to sell this stock, this will make it fall further (this is a trade market principle if supply exceeds demand). According to some experts, the U.S. government will not sell the stock until it completely loses its value.  However, the situation can be changed by the United States presidential election.

Average duration of remodeling in the automotive industry constitutes 5 years. This is why General Motors has to routinely upgrade its cars.  If the company can’t supply modern competitive cars, it will be losing its market share for a long period.

Today, Geeral Motors has production facilities in 35 countries all over the world and sells cars in 192 countries.

An increase in sales has a positive impact on earnings. This is the key factor affecting General Motors’ stock quotes. Today, automotive industry shows strong competition this is why a trader has to be very attentive and follow all news releases.

General-Motors-stockIt’s important that cars stay affordable to buyers because it directly impacts on sales. Affordability depends on prices of raw materials used in production. An increase in raw material prices has a negative impact on General Motors because it leads to an increase in production cost.

Besides, the company’s investment activities may give a cue whether it will have good financial results. Acquisition of promising companies may increase earnings. Mergers always show that the company aims to increase its revenue and push the stock quotes up. However, if a result of acquisition or mergers doesn’t meet expectations and causes losses, stock quotes definitely go down.

Along with the above said factors, General Motors stock quotes are impacted by demand on the stock market. If the company’s stock is not in demand and there is oversupply on the market, quotes go down. Also, quotes are affected by the company’s management promises, statements about future plans.

Where to Earn on General Motors Stock

Surely, you can buy General Motors stock but making a profit on it requires large investments, efforts and much time. The company’s stock yields on average 7% to 13% per annum.

However, if you buy binary options on General Motors stock, you can get much higher return.  Binary options may yield a 70% or higher profit in just 10 to 20 minutes, and this is not fiction, this is real.

Options on General Motors stock are rare, and few brokers have this asset available to buy. The well-known broker TopOption is almost the only one that sells binary options on General Motors stock. This is a reliable broker licensed by CySec

To make a profit on an option, you have to choose time of its expiration and forecast a direction the price will take during validity of the option.

On this website you may choose General Motors stock as an underlying asset from the list.  Once you have selected time of expiration, investment amount, click on the UP or DOWN button depending on your expectations whether you expect the price to rise or fall before expiration.

If by the moment of expiration General Motors stock quotes rise or fall in line with your forecast, you will make an 80% profit.

I opened the broker’s page and chose General Motors stock as an underlying asset. Then, I set time of expiration, investment amount and clicked on the UP button as I expected the quotes to rise:

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At that moment it was 3:16 p.m., and the option was to expire at 3:25 p.m. which meant that I invested for a period of 9 minutes. General Motors stock showed a steady trend, and it was unlikely to change.

If General Motors stock quotes went up even by a pip in line with my forecast, I would make an 80% profit.

Time went by fast and I got the following result:

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To understand what direction the price will take, you need to follow the latest trends, news, events of the company. You can follow this information on the insider websites like

http://www.marketwatch.com/investing/stock/gm

http://www.reuters.com/finance/stocks/overview?symbol=GM.N

Analyze the market and make a profit on binary options. By the way, TopOption offers a wide choice of underlying assets including the world’s top companies’ stock, stock indices, commodities and currencies!

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