Proshares UltraShort 7-10 Year Treasury shares are currently trading off about 0.5% on the day.
Companies may either sell their treasury shares (those held by the company) or open market stock.
The release from the Department of Treasury shares all the details.
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Paul O'Neill, the new treasury secretary, shares Mr Zoellick's global outlook and carries ammunition that makes him hard to ignore: the government's purse-strings and the cautious faith of corporate America.
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Daily 20 Year Plus Treasury Bear 3x Shares ( AMEX: TMV) where the total number of shares outstanding decreased from 17, 850, 000 to 3, 650, 000.
Our continued improving operating results should provide a catalyst for the U.S. Treasury to sell its shares at a profit for the taxpayers.
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If GM shares dive, Treasury could decide to hold off longer.
"Our goal is to see a wide array of healthy institutions sell preferred shares to the Treasury, and raise additional private capital, so that they can make more loans to businesses and consumers across the nation, " Treasury Secretary Paulson said in a statement Wednesday.
Or to put it another way, there would be an incentive on the recipients of the free shares to buy the Treasury out of what it is owed.
Yet it was an active quarter for AIG, which saw the Treasury sell the rest of its shares in the company as chief executive Bob Benmosche moved to strengthen the large insurer.
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In return the companies pay the Treasury a 10% dividend on those shares.
The Treasury decided to increase the number of shares it will sell by 106 million to 412 million shares total, and its stake in GM would fall to close to 26% from the 61% as a result.
Treasury will also have discretion to transfer its shares to a third party at any time.
The move came a day after the company said it would sell all of its treasury stock, representing nearly 2% of shares outstanding, through a private placement to professional investors.
In fact, the government's proposal to restore confidence in Fannie and Freddie--which includes extending their lines of credit from the Treasury and allowing Uncle Sam to buy their shares if necessary--is designed to help the mortgage buyers keep operating under their current, shareholder-owned business models.
While the size of the offering was somewhat smaller than Stirling anticipated, by getting a higher price the analyst believes the Treasury may coax some fence-sitters into the shares.
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The sectors, which have fared well for much of this year as investors flocked to high-dividend-paying shares, sagged Tuesday amid the rise in Treasury yields and the general rush to riskier assets.
Becoming treasury secretary, however, allows Mr Paulson to sell his shares without penalty or embarrassment.
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The Treasury Department said it would ask Congress for permission to buy shares of the companies' stock.
The Treasury would then create an offering package, containing both GDP Shares and Revenue Shares, for each of the competing tax plans.
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Financial shares remained in focus as the U.S. Treasury announced it would auction its warrants for Bank of America stock on Wednesday as it seeks to recoup taxpayer money spent bailing out the nation's big banks.
The senior preferred shares will be callable at par after three years, under the Treasury program.
For instance, if the Treasury Department is allowed to buy Fannie Mae's stock, will its shares be just like anyone else's?
The shares to be sold are owned by the U.S. Treasury, a union-run trust and Canadian federal and provincial governments, said the people familiar with the plan.
Media are reporting this morning that the Treasury has decided to hold off on selling any of its remaining 500 million shares of GM stock until at least July.
Separately, the Treasury announced it would increase the mortgage firms' credit lines and might buy their shares, which have been under enormous pressure in the stock market.
The Treasury Department still owns about 19% of the company, or slightly more than 300 million shares, on its way to completely exiting the investment by early 2014.
The US Treasury market continues to trade near record low yields, while precious metals ETFs like SPDR Gold Shares ( GLD), and iSilver Trust ( SLV) have been holding steady after their recent correction, not too far from their all time highs.
On October 13, 2008, US Treasury Secretary Henry Paulson summoned the CEOs of the nine largest US banks and forced them to sell shares to the government.
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