The Federal Home Loan Mortgage Corp. approved...

The Federal Home Loan Mortgage Corp. approved a 4-for-1 stock swap as part of its plan to open up ownership of its preferred stock to public investors and bring a more than $1-billion windfall to the savings and loan industry. In reaction to the announcement, the stock rose $6.50 a share to $145 in trading on the New York Stock Exchange. Freddie Mac said it will offer four new shares of preferred stock for each old share between Oct. 17 and Nov. 30. Public investors would not be permitted to purchase the stock until after Jan. 1. Each new share will be guaranteed at least a fourth of the dividends paid to an old share, but could receive more.