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AVAILABLE
AVAILABLE
Trades:
387
Markets run:
6
Top trader rank :
361
Worth:
$19,168.75
Member since:
October 25, 2007
Markets I've Created
- Will Fannie Mae & Freddie Mac still be operating as shareholder-owned companies on December 31, 2008?
- What will the OAS of TBA FNCL 5.5% MBS be on each of these dates?
- Where will the Dow Jones Industrial Average close on each of these days?
- Where will the Dow Jones Industrial Average close on January 31, 2008?
- Which candidate will win the 2008 South Carolina Democratic primary?
Recent Discussion Contributions
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You said, “I believe this may be an issue of semantics.” And, according to your explanation, your issue did indeed deal with semantics (i.e. the interpretation of the idea of being ‘shareholder-owned’). However, I am explaining that the determination will be based upon the formal definition of a shareholder-owned entity according to current US corporate law and will, therefore, remove the potential for any confusion due to interpretation of meaning (i.e. semantics). You are incorrectly assuming that a shareholder-owned entity is the same of a public-traded shareholder-owned entity, which is not the case. According to modern US corporate law, an entity is defined as shareholder-owned whether it is ‘public’, the shares of which are bought and sold by the general public on a public stock exchange, or ‘closely-held’, for which no ready market exists for the trading of its shares. That was my intended meaning and the reason I did not use the term ‘publicly traded’. I hope that clarifies the goal/intention of this market.
Will Fannie Mae & Freddie Mac still be operating as shareholder-owned companies on December 31, 2008? -
This is not an issue of semantics. A company is designated as shareholder-owned regardless of how many shareholders it has. The stock can even continue to be publicly listed even though the single shareholder may choose not to sell any shares at any price. If the single shareholder chose to no longer publicly offer the stock, the entity would still be shareholder-owned; it would simply be a private shareholder-owned corporation rather than a public one. The alternatives that the question envisions would be, as you mentioned, liquidation as well as being taken over by the government and converted into a full-fledged agency of the government such as Ginnie Mae, in which case they would by definition no longer be a shareholder-owned corporation. I hope that clears everything up.
Will Fannie Mae & Freddie Mac still be operating as shareholder-owned companies on December 31, 2008? -
In that case, the payout would be 1 because the companies would still be operating as shareholder-owned companies. It doesn’t matter if one of those shareholders is the US government, regardless of the percent ownership.
Will Fannie Mae & Freddie Mac still be operating as shareholder-owned companies on December 31, 2008? -
No, the question is asking whether both would still be functioning as shareholder-owned companies, so the payout would be 0 if only one is still operation as such.
Will Fannie Mae & Freddie Mac still be operating as shareholder-owned companies on December 31, 2008? -
Yes, in that case, payout would be 0.
Will Fannie Mae & Freddie Mac still be operating as shareholder-owned companies on December 31, 2008?
