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You seem to have made a decision on selling some portion of your GM shares. You need to decide if there are any issues affecting WHEN you want to sell. You having GMH shares to sell as a result of this trade-in program will probably not happen for another month. So, does this make a difference in your decision to sell?

> Is there any reason that I can't trade my GM stock
> for GMH and then cash in the GMH for cash?

Nope, but you are assuming that the GM->GHM deal will occur. GM expects stockholders to agree to trade-in approximately 29M shares before they are "obligated" to execute the trade-in program. The exchange offer period expires on May 19th. I not sure what the timeframe for the actual exchange is once GM determines if they are going to execute the trade-in.

Also, unless you are going to sell the shares via Fleet, who is holding the trade-in shares as book-entries in an account, you will need to wait until the certificates arrive.

> When you do this trade do they use the selling
> price of the stocks on the day you decide to make
> the trade or some other price?

I'm confused by your question. When you say "trade", do you mean the trade-in of GM->GMH or your sale of GMH after your trade?

If you mean your trade-in of GM->GMH, sales price is not an issue, except for the redemption of fractional shares. For example, the exchange ratio of the offer is 1.065. So, if you trade-in 10 shares of GM, you would receive 10 shares of GMH + the cash equivalent for 0.65 shares.

If you mean your sale of GMH, this is dependent on the broker you sell the GMH shares through. You should get some kind of quote from your broker on the sales price prior to your sale.
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