Fannie Mae-No Politics (FNMA)

[malebaboon]

KylieM - there are no hard and fast rules about $5 trading. It's just an arbitrary number that trading platforms and funds may use to weed out trading in 'penny stocks'. Each trading platform (ETrade, ScottTrade, Ameritrade, etc) may have their own rules for allowing margin trades, and every fund may have their own internal rules for buying and holding stocks. For instance, when FnF were delisted, many funds had to sell their shares, because their rules won't allow them to hold stocks that are not on a major exchange. These are not laws, they are rules for guidance in trading.

Hope this helps. There are endless variations, but $5 is a barrier in any respects, that once overcome, will help boost and maintain the share price above $5.

MB