Sallie Mae 2015 Annual Report Download - page 32

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sharing agreement, there is no assurance that Navient will have the funds to satisfy that liability. Also, Navient will not be
required to indemnify our stockholders for any tax liabilities they may incur for Navient’s violation of the tax sharing
agreement.
Risks Related to Our Securities
Our common and preferred stock prices may fluctuate significantly.
The market price of shares of our common stock may fluctuate significantly due to a number of factors, some of which
may be beyond our control, including:
• Actual or anticipated fluctuations in our operating results;
• Our smaller market capitalization as compared to pre-Spin-Off SLM;
• Changes in earnings estimated by securities analysts or our ability to meet those estimates;
• Our policy of paying no common stock dividends;
• The operating and stock price performance of comparable companies;
• News reports relating to trends, concerns and other issues in the student loan industry or other parts of the financial
services industry, including regulatory actions against other financial institutions;
• Perceptions in the marketplace regarding us and/or our competitors;
• New technology used, or services offered, by competitors;
• Significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or
involving us or our competitors;
• Changes to the regulatory and legal environment under which we and our subsidiaries operate;
• Our ability to securitize our Private Education Loans; and
• Domestic and worldwide economic conditions.
The market price of shares of our preferred stock may fluctuate significantly due to a number of factors, some of which
may be beyond our control, including:
• Significant sales of our preferred stock, or the expectation of significant sales;
• Lack of credit agency ratings;
• Movements in interest rates and spreads that negatively affect return; and
• Call and redemption features.
In addition, when the market price of a company’s common stock drops significantly, stockholders often institute
securities class action lawsuits against the company. A securities class action lawsuit against the Company could cause it to
incur substantial costs and could divert the time and attention of its management and other resources, which could materially
adversely affect our business, financial condition and results of operations.
An investment in our securities is not an insured deposit.
Our common stock, preferred stock and indebtedness are not bank deposits and, therefore, are not insured against loss by
the FDIC, any other deposit insurance fund or by any other public or private entity. Investment in our common stock is
inherently risky for the reasons described in this “Risk Factors” section and elsewhere in this report and is subject to the same
market forces that affect the price of securities of any company. As a result, if you acquire our common stock, preferred stock
or indebtedness, you may lose some or all of your investment.