Direxion announced today that it will execute a 1-for-10 reverse split of the shares of Direxion Daily Emerging Markets Bear 3x Shares ETF (EDZ) for shareholders of record after the close of the markets on Wednesday, March 3, 2010. EDZ shares will begin trading on NYSE Arca, Inc. (NYSE Arca) on a split-adjusted basis on Thursday March 4, 2010.
As a result of the EDZ 1-for-10 reverse split, every ten shares of EDZ will be exchanged for one share. Accordingly, the number of EDZ shares issued and outstanding, will decrease by approximately 90% and the net asset value ("NAV") and price of each share at the opening of the markets on Thursday March 4, 2010 will increase 10-fold.
This isn't the first time Direxion has executed reverse splits in severely decayed products. On June 22, it executed a 1-for-2 reverse split of its Direxion Daily Mid-Cap Bear 3x Shares, that took shares from $30 to $60. On July 9, 2008, Direxion executed a reverse split in both its Direxion Daily Financial Bull 3X Shares ETF and its Direxion Daily Financial Bear 3X Shares ETF. FAZ's 1-for-10 reverse split took the shares from $5.12 to $51.20.
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