Quoted from Concretehardt:
Not all all, I think everyone here including me appreciates news like this. My reply to your post about USO is just my feelings about it, a lot of retail investors get burned on this stock because they think they are investing in oil at a low price right now only to find out that that they were wrong.. and then they lose $$
USO is a limited partnership fund. They are for short term stuff. They are not an investment tool. I think they should be made illegal or at least not for public consumption.
Here is how they work: The firms that issue these ETFs are always skimming from the top. If your ETF is going up, they will skim some of the top for theirselves. You won't notice because your "stock" is going up.
If your ETF goes down in price and gets low enough, they will do big-number reverse splits.
This is all price data for USO. The highest price it has been is about $120.00. After the split it will look liked it had traded for $900.00 per share.
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This is TZA. It is a bearish ETF based on the Russel 2000.
It looks like it traded for over $160,000.00 per share at one time. It only looks like this because over the last 9-10 the market has relentlessly kept going up. TZA has done 4 or 5 8-for-1 reverse splits. It is trading for $35.oo today but you can't se that on this chart.
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Do yourself a favor and stay away from ETFs. ETFs were all the rage several years ago and if they are used as the were designed to be used they can be a helpful hedge strategy. The problem with Wall Street is the important details get left out of the sales brochures. ETFs are awaiting asset just like listed options on the CBOE.