DNA Brands Inc (DNAX)

[Ed the Trader]

"E-TRADE says up to 10 days"

To be accurate, if you contact a live person from E-Trade, they will tell you that your shares will be frozen until E-Trade receives the physical newly created post-split shares from the corporation's transfer agent. For whatever reason, for OTC subpenny tickers, this usually takes 10 trading days.

It does not have to take 10 days. I was holding MetroPCS stock (PCS) when the merger with T-Mobile resulted in a split. My shares of PCS in my E-Trade account were frozen for about one day to execute the split and change the ticker name to TMUS. It only took one day because that is what MetroPCS and T-Mobile wanted.

It will almost certainly take 10 days to get access to your new DNAX shares on E-Trade simply because that is how long Adrian wants it to take.

However, it could be worse. I once was holding shares of another ticker that suffered a reverse split. Those shares were frozen for roughly two months before I was able to access them again.

Because of these delays, be it two weeks to two months, a typical reverse split sucks about 80% of the pre-split value out of one's holdings before they will ever have the opportunity to place a sell order.