General Motors Stock Rises as Nasdaq Listing Switch Gets a Date

What happened

General Motors shares rose 1.5% in premarket trading Tuesday after the automaker said it will move its stock listing from the New York Stock Exchange to Nasdaq next month. GM common stock begins trading on the Nasdaq Global Select Market on Nov. 17, with Nov. 16 expected as its final NYSE day, and the ticker remains GM.

Confirmed

Global impact / market context

The switch changes which exchange handles trading in GM shares while the ticker stays the same, so investors need to prepare for the transition. It also makes GM eligible for possible inclusion in the Nasdaq-100 Index, which tracks large nonfinancial Nasdaq-listed companies, though eligibility does not guarantee a place.

Analyst inference

GM shares rose 1.5% in premarket trading after the announcement. Chief Financial Officer Paul Jacobson said the move fits the company's technology-focused strategy and efforts to create value for shareholders, while acknowledging GM's long relationship with the NYSE. The transfer itself does not change the company's business or shares outstanding.

Analyst inference

What to watch

1. Nov. 16 is expected to be GM's final trading day on the NYSE, and its common stock is scheduled to begin trading on the Nasdaq Global Select Market on Nov. 17, with the ticker symbol remaining GM. Confirmed
2. Watch whether GM is later selected for the Nasdaq-100 Index, which tracks a selection of large nonfinancial companies listed on Nasdaq; the article says eligibility does not guarantee a place in the benchmark. Proposed
3. Track whether the listing switch supports GM's stated technology-focused strategy and shareholder value efforts, and whether trading in GM shares proceeds smoothly around the Nov. 17 transition date. Analyst inference

Evidence

• gurufocus.com