A Purchase of Fannie Mae and Freddie Mac’s Common Stock is Speculation, Not Investing
The Motley Fool - July 22, 2014 - July 22, 2014
The Motley Fool
July 22, 2014, By Kingkarn Amjaroen
Fannie Mae and Freddie Mac shareholders continue to face massive uncertainty with respect to the underlying values of the common stocks of these two companies.
Buying the common stock of the two government-sponsored enterprises is a speculation on Washington’s inaction with respect to fundamental reform of the U.S. housing finance market. In addition, investors bet that U.S. courts will overturn the net sweep agreement and strengthen shareholder rights.