BetaPro Natural Gas Leveraged Daily Bull ETF T.HNU

Consolidation - What give?

[skydiver069]

Questioning why Horizons opted to announce a colidation? Let's face it, not many people like them. And 1:15 , that seems extreme.

I find it hard to believe that when trading around $1.80 it was placing its ability to list on the TSX at risk. Saying this because I've seen other's float below $2.00 without immediate risk.

Thoughts? I am open for a listing lesson here if there is one to be had.

[Moneyloop]

I found this discription on Horizons site. As a general rule, a consolidation would occur with unit values at or lower than $4. Lower priced securities require a relatively higher number of shares to be traded to establish the same dollar value position. As a result, investors paying brokerage commissions on a per share basis would incur higher transaction costs. As well, brokerage firms

[skydiver069]

Ok, thanks for passing their reasoning along. So, leveraging is a key factor. Wonder if part of this recent rise is due to margin calls then?!

[Moneyloop]

There is also naked shorting in process,and they're gonna half to cover at some point. 

[Moneyloop]

By the way, I do agree that 1.15 is a masive consolidation.....