Fannie Mae (FNMA)

[Commons_Cancelled]

Why would he put new money into Commons when he can buy Preferreds today and get Par in the Conversion? He gets more up-side and then also gets to participate in any price appreciation the Commons see down the road once all the dilution is over.

Not sure why this is so hard for a few of the people here to understand. It's really simple, i'll illustrate below:

Buy a $50 Preferred today at $10. Get $50 worth of Commons when the Preferreds get Converted to Commons at Par Value. You just made 5x your money and own Commons. Congratulations, you're now an Average Joe. You can now enjoy any up-side potential the Commons may have (maybe $1000 share according to some people).