Replies to post #151992 on Fannie Mae-No Politics (FNMA)

[rosen62]

In one example I have seen, the common shares tanked and so did the rights. At an extreme if the common price hovers around conversion price the rights will have little to no value. But getting back to the above example, some investor came in at the last minute and scooped up all possible rights and before expiration the stock shoot up and never looked back. In retrospect, the rights was *the* deal. It will be a period of both price manipulation and confusion as rights owners who are not in the loop will be sidetracked. Right now, I am in a rights offering situation that will conclude in Nov. 21st. Will see how that goes. So far, share price is up and down but lately more up than down... and participants are very confused.