What are they going to do with the FAZ?

Discussion in 'Trading' started by drukes1234, Jun 20, 2009.

  1. Inevitably this instrument is going to become a penny stock at some point, so are they just going to reverse split this thing to death or what?
  2. Are you a troll?!

    Anyway, FAS and FAZ are Financial WMD that were unleashed upon the greedy public...and promptly blew up in their faces. The bankers and brokers have the last laugh!!!
  3. I thought this was a reasonable question... why do you call him a troll?
  4. once it's trading in the pennies then it's pretty much the same as buying a put option...

    just that you don't really know the strike price... or the expiration date...

  5. taojaxx


    Liquidate it, I guess. FAZ shareholders don't own a piece of a company but a share of a trading position (short financial stock, party to some kind of total return swap or something akin to that).
    When that position gets worthless, the fund has to be unwound.
    That's a legitimate question, by the way. Will apply to other leveraged entities.
  6. No, I'm not a troll you degenerate child, it's a perfectly valid question that you clearly do not have the answer to.

    Thanks to the other replies, much more mature than the first one.