Federal National Mortgage Association (Fannie Mae)

Definition:

A publicly owned, government-sponsored corporation chartered in 1938 to purchase mortgages from lenders and resell them to investors. Known by the nickname Fannie Mae, it packages mortgages backed by the Federal Housing Administration, but also sells some nongovernment-backed mortgages.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Time spread strategy

Buying and selling puts and calls with the same exercise price but different expiration dates, and trying to profit from the different premiums of the options.

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