|From: halleluyah (Rep: 155) reply to tmorr55||Date: 05/04/2017 14:01|
|Forum: Wall Street Pit - Msg #2673627 - List JDST msgs ||Thread #673925233 (Rec: 0) |
|Re: Why did they split this thing?.....the split was announced 2/28/2017 effective for 5/1/2017 --- |
Direxion expected the share prices to necessitate the splits -
as Direxion explains:
Q: Why has Direxion Investments decided to reverse split ETFs?
A: Direxion believes it is in our shareholders’ best interest to conduct a reverse split in order to keep the ETF’s price in a convenient trading range.
For instance, Direxion expects the costs associated with trading these ETFs to decrease due to the split. The bid-ask spread is expected to decline as a percentage of the price paid per share. For instance, a penny spread on a $5 stock is 20 basis points1 (.2%), while a penny spread on a $50 stock is 2 basis points (.02%). Further, commissions charged by brokers who charge their clients on a per share basis will be lower as investors will need to buy or sell fewer shares to meet their investment goals.
| Reply to tmorr55 - Msg #2673624 - 05/04/2017 13:46|
Why did they split this thing? Usually they do that when a share price gets down to lower single digits. JDST was in the $12-$15 range of late,
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