Fannie Mae Preferred S (FNMAS)

[chessmaster315]

The difference between common and preferreds is the priority in the event of bankruptcy. ALL of the preferred shareholders get paid BEFORE ANY common shareholders get a dime in the event of liquidation, or dividends. Currently, FNMAS is not paying dividends to anyone except the federal government. There are lawsuits going on protesting this, as many feel that preferred shareholders should be getting dividends. (The government is a preferred shareholder who owns about 80% of FNMAS).