Direxion Daily Mid Cap Bear 3X Shares (MWN) Trades At New Price Today After Reverse Split

direxionDirexion Daily Mid Cap Bear 3X Shares (MWN), whose investment strategy to replicate, net of expenses, 300% of the inverse daily performance of the Russell MidCap Index, executed a 1-for-2 reverse split after the closing of the markets on Wednesday, June 24, 2009. MWN shares began trading on a split-adjusted basis on This morning.  As a result of the reverse split, a shareholder of MWN could potentially hold a fractional share. However, fractional shares cannot trade on NYSE Arca. Thus, MWN will redeem for cash a shareholder’s fractional shares at MWN’s split-adjusted NAV as of June 24, 2009. Such redemption’s could cause a shareholder to realize a gain or loss in connection with the redemption of the shareholder’s fractional share. Otherwise, the reverse split will not result in a taxable transaction for holders of MWN shares. No transaction fee will be imposed on shareholders for such redemption.


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