Replies to post #772747 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

Kindly, explain to me how the common stock going up in price would reduce dilution and less money?

If the price of commons falls, an SPS-to-common-conversion creates MORE (diluted) shares.

In the same way a capital raise dilutes shares most if the share price is down.

The more commons are diluted, the bigger the share of the pie that the government gets (in terms of percentage of ownership).