# of Shares Hypothetical Total Market Period Owned Hypothetical NAV Market Price Value ------ ----------- ---------------- ------------ ------------ Pre-Split 100 $6.00 $6.06 $606.00 --------- --- ----- ----- ------- Post-Split 10 $60.00 $60.60 $606.00 ---------- --- ------ ------ -------Shareholders of EDZ on March 3, 2010 will participate in the reverse splits. The Depository Trust Company ("DTC"), the registered owner of all EDZ shares, has been notified of the reverse splits and has been instructed to adjust each shareholder's investment accordingly. Redemption of Fractional Shares and Tax Consequences for each Reverse Split As a result of the reverse split, a shareholder of EDZ could potentially hold a fractional share. However, fractional shares cannot trade on NYSE Arca. Thus, EDZ will redeem for cash a shareholder's fractional shares at the Fund's split-adjusted NAV as of March 3, 2010. Such redemptions could cause a shareholder to realize a gain or loss. Otherwise, the reverse split will not result in a taxable transaction for holders of EDZ shares. No transaction fee will be imposed on shareholders for such redemption. "Odd Lot" Unit As a result of the reverse split, EDZ will have outstanding one aggregation of less than 50,000 shares to make a creation unit, or an "odd lot unit." Thus, each fund will provide one authorized participant with a one-time opportunity to redeem the respective odd lot unit at its split-adjusted NAV, or at the NAV on such date the authorized participant seeks to redeem the odd lot unit.
Direxion Shares Announces Reverse Share Split Of ETF
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