FI 457 Lecture Notes - Lecture 8: Fannie Mae, Government National Mortgage Association, Value Line
Document Summary
Mortgage related: fnma, fhlmc, gnma, federal hoe loan banks. In september 2008, feral government took over fnma and fhlmc. Corporate tax exclusions on 70% of dividends earned. Purchaser (long) buys specified quantity at contract expiration for set price. Contract seller (short) delivers underlying commodity at contract expiration for agreed- upon price. Futures: future commitment to buy/sell at preset price. Public offerings: registered with sec; sale made to investing public. Private offerings: not registered; sold only to limited number of investors with restrictions on resale. Issuing firm does not receive proceeds, not directly involved. Fewer obligations to release financial statements to public. Private placement: primary offerings sold directly to small group of investors. Sell securities to the general public; allow investors to trade shares in securities market. Underwriters: purchase securities from issuing company and resell them. Prospectus: description of firm and security being issued. Underpricing: post-initial sale returns average 10% or more.
