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AIG’s stock closed at $47.84 on Thursday. At the start of the month, shares were trading at a mere $13.14. What’s going on here?

Source: CNNMoney.com

Date: 8/27/2009

Keys: Banking, economy, investing

Link:  http://money.cnn.com/2009/08/27/news/companies/aig_stock/index.htm?postversion=2009082716

Questions for discussion:

  • Summarize the reasons given for the remarkable rise is AIG’s stock market value?
  • What do you think of the government’s decision to help refinance AIG through preferred shares? Explain your thinking.
  • Do you think the share value behavior would be different if the government ownership was through regular common shares? Explain your thinking.

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