Why Shares of Fannie Mae and Freddie Mac Exploded Higher Today

Shares of the government-sponsored entities (GSEs) Fannie Mae (OTC: FNMA) and Freddie Mac (OTC: FMCC) popped today for no obvious reason. In the final half hour of trading, shares of Fannie traded nearly 26% higher and shares of Freddie traded nearly 28% higher.

Part of why Fannie and Freddie can move a lot is because they are now penny stocks with millions of shares trading hands each day.

But the big reason they draw so much interest is that they have been under government conservatorship since the Great Recession, when they nearly collapsed.

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Source Fool.com