Why GM May Be a Great Addition to Your Stock Portfolio

General Motors has not been associated with the phrase "financial stability," for quite some time now. Even after the bailout, the company seemed iffy and stock ratings were low. However, that's not to say that they aren't a great purchase now.

It's All About Indexes:

After the bailout, GM was removed from the Russell 3000 index, due mostly to their bankruptcy and $44 billion dollar market cap. Large companies get removed from the index all the time. However, they are usually reinstated as soon as possible, which is what seems to be happening here.

Becoming a part of this index, of course, does not always ensure success. However, nothing in the stock market is fool-proof or set in stone, and GM's stock seems to have an above average chance of being successful, something investors may want to take advantage of in these less than certain times of financial woe.

Why To Buy:

What GM's inclusion in the Russell 3000 means to investors is that a large amount of institutional attention may greatly affect the stocks price in the long run. The inclusion of a stock in the Russell index means that companies and index funds trying to emulate Russell's performance may buy the stock as well, a huge benefit for shareowners.

If You Buy, Buy Fast:

If you do make the decision to invest in GM, make sure you do so quickly. The stock, if all goes as planned, will make the most gains after its inclusion in the Russell 3000, so you will want to invest before then.