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Why is fannie and freddie down 50% for today?

New York Stock Exchange

Why is fannie and freddie down 50% for today?

Postby culann » Fri Apr 12, 2013 7:12 pm

Why just being taken of the NYSE affect the stock?
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Why is fannie and freddie down 50% for today?

Postby stevenson15 » Fri Apr 12, 2013 7:18 pm

Why just being taken of the NYSE affect the stock?
The NYSE has certain rules that prevent poor stock performers from affecting their listings. One such rule is that if a stock trades below $1.00 for 30 days it will come under review for delisting. FNM and FRE are both under government conservatorship, meaning that the government essentially owns them. They have decided that both stocks are essentially worthless without admitting it fully. Both stocks will continue to be traded under the OTCBB, which is reserved for "penny stocks". The reason for the sudden drop in price is that a delisting is almost never a good sign for a company's health. Stocks prices are usually a barometer of the potential worth of a company, not their actual value. As such, a delisting would indicate that the company's potential outlook is poor. Investors get scared and sell off, and we all lose money. Yay.
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Why is fannie and freddie down 50% for today?

Postby barric » Fri Apr 12, 2013 7:23 pm

The stock is being delisted and shortly it will be worthless.
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Why is fannie and freddie down 50% for today?

Postby hardwin » Fri Apr 12, 2013 7:26 pm

if it's delisted, it's harder to trade and only an idiot would have bought that stock anytime after their big problems and chronic losses were announced
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