FAS = 1 for 5 / FAZ = 1 for 10

After the close of the markets on July 8, 2009 (the “Record Date”), the Financial Bull Fund will effect a one for five reverse split of its issued and outstanding shares and the Financial Bear Fund will effect a one for ten reverse split of its issued and outstanding shares.

 

Any link?

 

http://www.direxionshares.com/index.html

http://www.direxionshares.com/document/regulatory_documents.html

http://www.direxionshares.com/pdfs/Prospectus_Supplement_FAS_FAZ.pdf

blog article:
http://trend-signals.blogspot.com/2009/06/fas-and-faz.html

 

Should be interesting to see the outcome of these 2 reverse splits.

 

ugh 29m float? ouch.

 

so these things reverse split to the 40's and then slowly drop over the next few months to the single digits? What a scam.

 

My thinking exactly.

 

Is it difficult to locate shares for shorting? If you do short these is it expected to be called shortly after?

thx

 

Are the shorts going to pile in on both FAZ and FAS next week after the reverse splits. Everyone seems to believe its money in the bank however the massive rally in bank stocks continuously over the last 4 months has led to a single digit trading range for FAZ, For FAZ to see single digits once again you have to believe big time about the banks going for another 100%++ rally from now until the end of 2009. It has to be one continuous rally with week over week, month over month of gains to see FAZ go straight to $4, $5, $7 or $9 bucks. By that time FAS will be trading over $100++++

 

Both FAZ and FAS have single stock futures (Interactive Brokers), but the spreads can be wide.