Fannie Mae 2010 Annual Report Download - page 361

16. Equity (Deficit)
Common Stock
Shares of common stock outstanding, net of shares held as treasury stock, totaled 1.1 billion as of both
December 31, 2010 and 2009. In 2008, we received gross proceeds of $2.6 billion from the issuance of
94 million new shares of no par value common stock with a stated value of $0.5250 per share.
During the conservatorship, the rights and powers of shareholders are suspended. Accordingly, our common
shareholders have no ability to elect directors or to vote on other matters during the conservatorship unless
FHFA elects to delegate this authority to them. The senior preferred stock purchase agreement with Treasury
prohibits the payment of dividends on common stock without the prior written consent of Treasury. The
conservator also has eliminated common stock dividends. In addition, we issued a warrant to Treasury that
provides Treasury with the right to purchase for a nominal price shares of our common stock equal to 79.9%
of the total number of shares of common stock outstanding on a fully diluted basis on the date of exercise,
which would substantially dilute the ownership in Fannie Mae of our common stockholders at the time of
exercise. Refer to “Senior Preferred Stock and Common Stock Warrant” section below.
F-103
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)