Fannie Mae-No Politics (FNMA)

[Wise Man]

WHAT?If the shareholders get to buy first the stocks offered, THERE's NO DILUTION WHATSOEVER. Regardless that the stock offering is done at the price you want: $100ps, $50ps, $1ps, etc, because the shareholders are the ones that buy those stocks.
Dilution means dilution in the shareholders' participation on the earnings.
Or what is the same, dilution means dilution in the shareholders' participation on the ownership.
Having the opportunity to buy the stocks offered in order to maintain the current percentage of ownership, there's no dilution.

It's also called Preference Subscription Rights.
If you want to get diluted, you sell your rights on the market.