Fannie Mae-No Politics (FNMA)

[Bruce A Thompson]

Just A Reminder

I apologize for being redundant.

If you purchased your FNMA in your margin account, you had to use cash to make the purchase. FNMA cannot be purchased on margin.

That also means that FNMA shares do not count as equity in a margin account for other margin purchases.

So. Now you would have used cash to purchase an un-marginable stock and it is sitting in your margin account taking up trading space and dollars.

What you may not realize is those very cash paid shares can still be loaned to shorts because any stock in a margin account can be lent by your broker even though they are fully paid shares.

That means the shorts are raiding your accounts and using your shares against you. There is nowhere else they can borrow shares from. Nobody in their right minds is knowingly allowing their fully paid shares to be loaned to shorts.

The only thing you can do to stop it is to move them to a cash account.

Again, I apologize for being redundant and hope everyone is already dealing from cash accounts.