Someone told me that the Fannie Mae (FNM) will never go broke…?
Someone told me that Fannie Mae (FNM) is an excellent buy as a penny stock because it is an international holder of mortgages and will NEVER be allowed to go broke. They say once the economy is fixed it will rise back up. Does this sound right to anyone?
In theory they will not go broke, but in reality they can. Although the government will most likely always bail it out the future is unpredictable. Also even if they remain in existence they can wipe out their current shareholders which means all of your money will be lost and the company will pretty much be owned by the creditors who will probably sell it quickly. So even if they never go bankrupt there is an investment risk that you will lose everything you invest in this company.
ALAS International Holdings, Inc. (VDSC) Penny Stock Trading Chart_7/9/2013