What Happens When GE Breaks $5?

Just as no IT professional ever got fired for buying IBM, no mutual fund manager ever got fired for buying GE (GE).  (Not yet, anyway.)

As a result, the vast majority of broad-market mutual funds own GE.

In order to avoid the appearance of trafficking in penny stocks, many mutual funds also have rules that prevent them from owning stocks whose prices are below certain prices, such as $10 and $5.

So we have a question for all mutual fund companies whose rules prevent them from owning stocks with prices under $5: Are you going to suspend those rules when it comes to GE?

If the answer is “no,” who will buy up all those shares?

See Also:
Even At $7, GE’s Not Cheap

The Man Who Destroyed GE

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