AIG (NYSE:AIG) is one of the largest insurance companies in the United States. The company offers all types of insurance ranging from health to auto, home and more! Now investors are starting to become excited because AIG has announced that it plans to spin off its mortgage insurance unit, creating yet another investment opportunity. Today, we’ll talk about AIG’s plans, how the market is reacting to the news, what we can expect to see moving forward, and how binary options traders can take advantage of the trends.

AIG Will Offer Shares On It’s Mortgage Insurance Unit

AIG is a company that’s made up of several units. One of the most profitable of these units is the mortgage insurance unit. On Friday, AIG announced that it is planning a big spin off. Under the new plans, AIG will be offering shares of its mortgage insurance unit, giving investors more opportunity to invest in the company. This is a big piece of news since investors and activists have been pushing for further more asset dispositions. So essentially, AIG is giving investors exactly what they have asked for.

How The Market Reacted To The News

As binary options traders, we’ve learned that there are several things that can cause movement in the market. One of the most pressing factors that causes movement in the market is positive news with regard to a publicly traded company. So naturally, following the positive news, we saw incredible gains in the value of AIG on Friday. However, those gains started to disappear on Monday. Unfortunately, global market conditions are negative, and there are few stocks that are immune to the resistance. By 1:35 on Monday, AIG fell 0.71% to $55.95 per share.

What We Can Expect To See Moving Forward

Moving forward, I have a very mixed opinion of what we can expect to see from AIG. The reality is that what we can expect depends entirely on how far into the future you plan to look. I have no doubt in my mind that AIG is a great company and that it is likely to climb in the long run; especially considering the new mortgage insurance spin off. However, in the short term, things aren’t looking so great for the stock, or really any other stock for that matter.