There seems to be many contradicting ideologies in this site regarding the DWAC stock and that being the case, shilling and sliding and manipulation is going to be a piece of cake for hedge funds and other groups with nefarious purposes.
As a disclaimer, none of this is financial advice, do your own research, and WWG1WGA. You are free to make whatever decision you want.
One of the most jarring contradictions I see is people claiming to selling high and buying back in at a lower price. And it appears a good majority here agrees with this sentiment and probably doing it themselves. I have been with the GME saga from the start and I can tell you that this strategy benefits no one but yourself (in a very short term sense) and the hedge funds who are shorting the stock.
The outstanding shares of this company is only a 1/3 of what Gamestop is. With the volume we are seeing with this stock, we should have secured the outstanding shares by now. But instead, the vast majority are seeing this as a day trading opportunity and moving on once the excitement dies down. Yes we can blame the hedge funds all we want for using dark pools to hide buy orders, and short selling to drive down the price, but a good deal of this can be blamed on retail investors as well.
There is a reason why GME apes' mantra is BUY AND HODL. No where does it mention any selling and buying back into the stock to raise your share amount. Hedge funds are currently shorting the shit out of DWAC. You selling your shares are giving them the ability to repeat this process and cycle over and over again.
Hold your damn shares. Get some diamond hands. Allow them to continue shorting and creating synthetics to put themselves into a hole.
We need to be more coherent with our message around here.
Do you want to support this company and see it rise to new heights? Or do you want to make a quick buck and call it a day? If you believe this is more than just a pump and dump, that you are actually investing in something that can change our country for the better, that this is something you know the world needs, then you know what to do. BUY AND HODL. Very simple message. Instead of selling when the price is high and buying more when it drops, hold and buy more when the price drops. In that way, we are effectively locking up the float and restricting the hedge fund's ability to further manipulate the stock.
But of course it's not just as simple as that. Buying and holding is not a foolproof way to prevent manipulation. But it does allow the hedge funds to further dig themselves into a hole and allows the short interest to grow. Stock brokers can lend out your shares and contrary to this ongoing belief in this site that setting high sell limits will restrict them from doing so, is false. They can lend out your shares regardless of the status of your shares, as long as it is in your account, have no doubt, they are lending them out.
The only way to prevent them from lending out your shares is through registering the stock through DWAC (Deposit/Withdrawal At Custodian) https://www.investopedia.com/terms/d/dwac.asp Computershare is not the transfer agent for DWAC so you will not be able to register your shares with them.
DRS is the electronic version for Deposit/Withdraw At Custodian. https://continentalstock.com is the Transfer Agent for DWAC.
Last note I wanted to end on that expounds on a point mentioned prior.
This is not just an investment opportunity. This is for your children. This is for your family. The censorship, the manipulation of information, the corrupt media that is costing lives in this country can be brought to an end.
Take care everyone and I am excited for the future and what it will bring.
BUY AND HODL.
WWG1WGA.
NCSWIC.
Very insightful post, but I will just add one more thing to BUY AND HODL.
Invest ONLY the amount you can afford to lose. Once you invest, forget about it. Assume its gone. Even if you can afford only one share, and you truly believe in Trump, that one share is going to be worth a fortune in the best case.
I don't know what you and OP are talking about. The point of holding the line with $GME was to cause a short squeeze, which FEC meddling prevented from happening by letting the air out slowly instead of all at once. The point was to redpill normies that the game is rigged.
$DWAC is not a short squeeze situation in the slightest. MarketWatch shows 0.01% float shorted, which is a joke--$GME supposedly had an impossible >%100 float shorted. Does Trump need us to get the share price higher? Is there some goal to a rampant speculation pyramid scheme that leaves fellow patriots holding the bag? I don't see an ethical imperative to hold, nor a justification for hedgies to short $DWAC.
I actually see the opposite; hedgies want Trump to get involved in business so that he can't run again in 2022. They want $DWAC to shoot up so they can say Trump started a pyramid scheme and that he profited off his position of power and used his control of social media to get re-elected. That's why it's getting so much coverage in the MSM, when you would expect a media blackout around Truth Social. I believe Trump has purposely baited them into doing this in order to get free advertising for his platform.
The pattern of shooting up and then selling off to lock in gains and then people buying the dip, this happens with all stocks, this isn't a sign that hedgies are shorting it to depress the share price. And it's smart investing for us to sell high and rebuy the dip, why should we eat that loss ourselves? How is it "unethical" for us to sell before a dip? What's unethical is to advise everyone to hold the bag while others cash in. Let the market work.
This post deserves many more upvotes.
DWAC is way too small cap to have been driven down this early. I believe we already have an instant Gamestock situation here and sites like Marketwatch only publish data that’s available to them.
DWAC will be an AMZN-like investment..
Trump said the market will take off like a rocket. I believe this is because the world’s wealthiest people are overextended and short a market they thought they had full control over.. Their orchestrated crash will fail miserably and result in a short squeeze for many companies while the big tech commie companies may have a reckoning.
I'm open to that, but I don't have paid access to real-time data on what % of the float is shorted. Do you?
I don't believe that anyone does - not even the markets or the regulators. I think only the short-owners and their brokers know the short positions of their clients. It's legally required to report short positions periodically.. but taking a new short position appears to the market just like a normal sell. If short positions aren't reported properly, it's difficult to know where anything stands. That's why Gamestop is so significant - it was so heavily shorted that even reported short positions outnumbered the float. That was supposed to be impossible - something the market makers all prevent - and it was instead instantly proven that something they are tasked with preventing is something that they are instead causing. Either that, or there is some very complicated reason why all this has happened with Gamestop - but I would say at this point it's much easier to say this was caused by system cheating by the system tasked with keeping things honest.
Yeah let's all lose our mo ey on purpose for no reason.
And if there is one person with the experience of standing up to BIG tyranny, and the resources and the leadership, its Trump. This is truly once in a lifetime oppurtunity.
THIS.
If you need the money, it's not yours to invest.
I was only able to get 3.. But I bought in at 14 so yeah. 40 bucks turned into 300.. I'm holding tight.. New to this.. I hate seeing red though😡 but know long haul it WILL BE WORTH THE WAIT!!
As long as you have no problem losing $40, just hang on to it, and who knows, one day that will become a fortune.
Buying DWAC is investing in America for the people! Selling DWAC is like selling America. Don't be like them, HOLD!!
I am not American but for freedom I will buy and hodl gladly.
You mentioned the transfer agent is continental stock. How did you find out? When I was searching for it, I saw somewhere that it was EF Hutton or something like that.
Also do you know whether you can do DRS/DWAC already or do u need to wait until the merge happens?
Absolutely. I also believe that we, the investors in DWAC, are part of the Storm on this front of the Plan.
Could be the big thank you for being the keyboard warriors?
I strongly believe this. I have seen so many IPOs, and even wanted to get in on some, but never managed because of the way IPO shares are allocated. Small guy never gets in. This is the first time I was able to get in in the ground floor and I dont think its for no reason.
I hear you fren. I missed out the original GME boat, but get everything setup so DWAC was a piece of cake.
But you know whats sad? I posted on SuperStonk about DWAC and they yelled at me for posting pro-Trump stuff. Stupid idiots with tunnel vision
SuperStonk got crazy shilly ever since the DRS frenzy. Shills are sliding with DRS posts. The sub seems to be united because the shills are able to use DRS posts to slide and build complacency.
You really can’t post ANYTHING controversial there unless you are a sort of celebrity already there or have put in an amazing amount of work in describing and backing your point.
I tried questioning why people are DRSing 100% of their shares, acting like they’ll sell from Computershare once the float is locked, and asked how they figure the float will stay locked up once everyone starts selling their locked shares again. Of course I’m labeled as a shill pushing FUD there...
It’s kind of ironic how cult-like the mentality is getting over there with how much control shills have over there.
You have to remember that most Apes admit to being retarded smoothebrains, and are simply following what others present them with. So it is a common sentiment over there that Trump is just a con man trying to make a pump and dump after his Presidency.
You also have to know how vigilant everyone is against other supposed stock prospects. Nothing holds a candle to the DD on GME and anything else is automatically a distraction or red herring unless it has near the proof GME does.
For example, Loopring only recently is becoming an acceptable investment over there now that the DD on its relationship with GME is getting more undeniable.
Visit gmedd.com for anyone curious.
Hey there. I’m new to all of this, just learned about DRS after reading this post.
Could you explain what you mean by “float” and “locked” and all that stuff. I don’t know these terms or what you mean. Could you explain to us normies What happens when you DRS 100% of your shares exactly and why is it a problem. Thanks.
I may not be 100% correct on a few details but this is how I understand it:
The float is the amount of shares available to trade, set by the company when they first enter the market as shares sold by them. These shares are actually all mostly registered under the name "Cede and Co", and are on the DTCC's record books (Depository Trust & Clearing Corporation), and when you buy a share through a broker, they still technically own the shares, you are just entitled to them as the beneficiary. This means you can order the owner to do anything with the shares, and they are legally obligated to do it, and you will receive the money from the sale.
They profit from this because they can lend your shares out to others, and there's very good speculation that many brokers don't even buy the shares and just pay you the difference when you close positions, using your money to do other things which in the end is devaluing the very things you invest in. It's hard to explain all of the ways they can do fuckery.
DRSing your shares removes it from the DTCC's books and onto the transfer agents books as being under your own name. When shares are on the DTCC's books, they are legally counted as "a reasonable supply" to naked short shares or something like that. The wording makes it so any shares at all being listed there means shares are available therefore they can naked short it all they want. If you don't know, naked shorting is when you sell a share you don't own with the obligation to buy it back at a later date. The gamble is if the share continues to rise after the sale, it counts as a negative balance and you will get "margin called" if its too much, which means all your positions get closed and taken on by the broker.
So, what all of this means, is that since shares have been lent out and naked shorted, more people are beneficiaries of shares than there are actual shares. But the supposed "naked shares" are still legally counted and treated as real, however "fake" they are. So when the shareholders DRS the amount of shares that are in the float, this would be called locking the float. Any more DRS requests will be denied as no more shares will be located, and there is protocol that the transfer agent shall notify the company, where they can legally issue a share recall without being accused of market manipulation to purposefully trigger a short squeeze.
Essentially this means Gamestop will be able to say that since the Market Makers (those specifically allowed to naked short) have fucked up their market so much, they are withdrawing their shares from the open market. This would absolutely force all short positions to close, absolutely forcing a short squeeze, because all of those fake shares would then legally NEED to be IMMEDIATELY bought back at whatever the market price is.
Once shares are locked, the brokers would be the first to know about it before anyone, and the short hedge funds would be fighting over eachother to get out ahead of everyone else before the inevitable. The share recall would take some time, so I'm certain they would spike it with buying before the recall to entice those who have DRS'ed 100% of their shares to at least sell a few of them to unlock the float and keep it sort of perpetually never locked long enough to go forward with an actual share recall, since they don't have any of the naked shares in a brokerage account to sell.
Convincing people to DRS 100% of their shares would be in their best interest now that the DRS avalanche is too much to stop. It's their absolute best bet of getting them to never keep the float locked for long enough to thoroughly document and present it as a certain thing in order to legally recall their shares.
It used to be really common sentiment at first that it makes no sense to DRS all of it since you will of course want to sell some of it during the actual MOASS, and that DRS is only for the so called "infinity pool" there they can keep the shares in their name to keep the price high and sell their broker shares for whatever price they want when they need to. Because you need to keep the float locked to keep the infinity pool going, to never actually allow the share recall to go through while the short hedge funds are bled away.
Yeah gotta remember what SuperStonk like much of Reddit is still overrun with lefties with TDS. If GME turns out to be part of the plan well most of those people will just have been unwitting participants. I remember some of them even freaking out months ago about there being "Qanon" people among them and worried what we'd do with "real money". Also the annoyance is how many GMEr think it's the only play at all, meanwhile I followed the Vitards for a bit and took the profits I made off of steel companies to buy my DWAC.
Yeah its the same with Thomas Wictor crowd. They all see a small glimpse into the matrix, but they are too scared to open their mind to the whole matrix. Its kinda funny to watch.
I think they need the time and more damning evidence what is really going on.. They didn't know about MSM lies just few months ago..
I always thought GME was part of the Trump plan behind the scenes.
Especially since the news seems to hit forums like this first. My broker couldn’t buy, he was shut out and had to call corporate, to which the explanation was some sort of run around. Took me a couple days but I bought low today. HODL fren
Huh? You got a broker????
(I am imagining you are the Pepe in that HODL meme with expensive fur coat and cuban cigar, lol)
Don’t get too excited! There’s not much in there but started paying attention and grew it enough to ask him to cash out some and invest in DWAC.
I've been in a few IPOs (including Facebook) and swore off of them because how it'll rocket the first day or two and then plunge when people take profits right away so it never made sense to jump in right away. This seems different in how the SPAC silently appeared a month ago almost like it was meant for us paying attention to find it and jump in a bit early.
I'm holding my shares bought on the first day and adding to them, doubled it today. Plan on holding for a long time. Not a day trader.
Listen, I'll be that guy. DWAC has no product. They have no revenue. There is no business. Those are all facts and anyone who says otherwise is lying.
There are 2 ways to make money investing in stocks. 1) buy good, fundamental companies who have sound business strategies. 2) speculate. That's it.
I'm invested in DWAC and doubled my position today, and will continue to buy more when buying signals support it.
Why? Because I love DT. Period. I have disposable money to speculate with and will take the risk.
This is risk. You think a few thousand people with a few thousand dollars each can out-manipulate the experts with years of experience? Good luck. I'm not buying because I think I can break the system. I'm buying because I think this will fucking explode.
HODLING ON!
McFartington is my spirit animal. My puny 80 shares were bought last Thursday morning have swelled and shrunk bigly both directions but I knew the moment that I bought them that they were HODL shares no matter what happened for the exact reasons McF states above. This is much more than a stock market play.
Stay the course this is coming from a gal who lived through both gme and amc (bought amc at 5.00 sold at 70 and bought more gme wire proceeds). I sunk 10k into dwacw and 1k in dwac and have lost to date but I fucking HATE WHAT PEOPLE ARE DOING TO THIS COUNTRY
I do not have money to burn. After the dwac I have 3k in my checking account. I’m not wealthy but I’ll be DAMNED if those new world order assholes who want to kill our kids and take our freedoms stop those who are protecting us.
DJT & co. If you are reading this know we are counting on you and putting our savings on the line. Do NOT LET US DOWN.
I have full faith in this being part of the dismantling of msm/social media plan. They’ll deliver 😎💕
Well said. I have not bought any DWAC or PHUN as I am we todd did and act slowly and all my spare cash is in GME. I did lettuce hands a few trades this year thinking it would dip again and it was a little costly both in doll hairs and feels ...but I am learning.
If you like the stock, hodl.
I day traded a few AMC shares for an experiment. Lost a small amount of money and learnt my lesson. I was so anxious!
When I saw that signoff on this post on r/DWAC_stock I couldn't wait to find out which of our GAW boys was behind it.
Remember newbies. No takebacks. Hedgies CONTROL THE WORLD with the money they have shiested from newbies like you. The laugh. The snort blow off hookers' asses in the Caribbean with your children's college money.
You only take a loss when you SELL. No sell, no loss. Spell "hold" like this: HODL. This is because you are now an autistic ape. So be proud and HODL. TO THE MOON.
Absolutely true, but ... the money is SPENT when you buy, and once bought, the money is tied up until you sell.
Thanks for the info. I’m currently out of town on a job in a remote location and wasn’t able to jump in from the start but as soon as I get back to civilization I’m gonna dump some in and let it ride until my grandkids need it some day. And no I don’t have any grandkids yet so it’ll be awhile.
Just curious - if you have internet access and can post this message, what's stopping you from buying shares online? I can access my Fidelity account from anywhere.
It is reaaaaalllly slow.
Don't bet what you CAN'T AFFORD TO LOSE! DWAC maybe great.
Indications is that a correction could be near. Evergrande, FED printing, FED tax everything NOW.
Good luck!
Thank you! I am going to hodl. Period. When I first got into GME my thoughts were that I might make money, might break even, might lose but it was a big FU to the elites. From the DD's it looks like I'll make a ton of money but I am not investing anything I cannot afford to lose.
I believe in what Trump is doing so I am trying to help financially to have a great place to communicate without a disclaimer banner. I was banned from Twitter for being a conservative with too many followers-no fights-I didn't do anything wrong.
Will I make life changing money? Maybe. Without a doubt it's a step in regaining our 1st Amendment rights. If there isn't a merger I still will not regret.
I got into PROG today and don't plan on holding it. I read tonight that they might partner with Pfizer so I am not feeling great about it.
Just HODL y'all. Aside from the financial hopes we are making the elites uncomfortable.
Guilty as charged. I got 2k shares in my IRA @ 12.84. Sold 1k of them at exactly $175 the next day and will hodl the remaining. I'm not used to seeing those types of return in such short order.
Holy Crap! You couldn't have moved that any better.
$160K profit?
You have good instincts!
I really don't think any investment firm is going to lose their ass over the new stock. They may have fucked up with gamestop but why would they do that again? Besides, I don't see anything going belly up. I don't really understand how we are saving the world by buying Trump stock and holding. I guess that part needs to be spelled out a little more for me.
One thing I've learned is that these people exploiting and gaming the stock market are no different than the types who finds exploits in online multiplayer games lol
In my many years of playing games, whenever you smoked one these people out of their exploit...they went right the hell back and doubled down. In fact they wouldn't even try to do anything else except vehemently try to get back to exploiting.
This is a little different. Short hedge funds are the cheaters who don’t get banned because they know the developers. They don’t play by the same rules you do. Their tactics are not honest exploits of a happen-stance loophole, they were built in and programmed for the exact purpose of them using it as an advantage over others.
Look at Citadel bitching and crying to the SEC this week in court over retail beating them at their own game by following the rules. They literally argue that they have every right to not play by the same rules as us! It’s fucking crazy.
So when you beat them, they don’t change, they go tell on you to daddy. They are far below how you portray them. Complete sorry losers.
I listened to that weasel Citadel lawyer for a bit from a live link on superstonk daily thread. He didn't impress the judge any! Fast talking twit was too clever by half!
Never underestimate TDS.
They will jump onto any stock that has fresh new retail sentiment as there is money and manipulation to be made. They are not margin called or bankrupt yet. They will use crypto and stocks to continue to try to stack chips to counter the onslaught that is fast approaching them.
Hi McFartington, I really want to buy and I have been trying but I do not know how. I have never done this. At least $100 because I am not rich. Please make it easy to me. Just simple steps. Btw do brokers charge a lot of money? If I get a Fidelity account Do I have to have money? Thank you for all you do.
Brokers do not charge any fees anymore because they sell you the stock at fractionally higher prices. On Fidelity, you have to deposit funds by linking your bank account. Also, they do not sell fractional shares so you have to buy them whole. For example, the price currently is $55. You would have to pay $110 to buy two of them, or you can only buy one with your budget. And no, there is no minimum with Fidelity. You can start off with $100.
i bought fractional shares on fidelity.
You told something about invest and hold? How is that? Will you guide me? If I open the account Can it be with the $100.00 I will invest?
Yes it can be with the $100 you wish to invest. You just need a bank account. But with Fidelity, a broker I would recommend, only allows you to buy full shares, not fractional, which means you have to buy one whole share at the market price. With the current market price of DWAC, you would not be able to buy two shares on Fidelity. Robinhood offers fractional share buying which would allow you to buy $100 worth, but I would not recommend that platform as they are pretty corrupt. Hope that explains enough.
If I buy i keep the share for how long? Thank you again.
You keep it for as long as you want. It's yours, held on your behalf by Fidelity (in this example). It's value will change every day and you can follow it as closely as you want. Buying one or two shares is a good way to 'force' (encourage) you to follow the market. There are no tax consequences until you sell, at which point, only the profit element is taxable, and that tax can be either short term (treated as income) or long term (treated more favorably) depending on how long you hold it. Just be aware any stock can drop to nothing and there's no insurance to back it up. Edit To Add - there CAN be minor tax consequences if the stock issues dividends, but if you only buy one share then this is not likely to be an issue. Plus, I doubt this would be a dividend-issuing stock.
What is so hard to understand? Trump Media has the potential to take down main stream media, Twitter and FB. Twitter and FB censorship keeps the American people stupid to the truth. The main stream media can lie without being exposed because counter arguments are deleted in social media when it does not conform to the main stream narrative. Trump's new social site will expose the truth, zero censorship. If Trump is going to expand his multi media complex he needs revenue to do it. If people are selling to make a quick buck, they are taking away funds from the only tool offered currently to destroy the deep state. Its simple.
Im somewhat glad this slip happened at the moment. Im trying to help my mother and a friend financially long term and neither could afford the share price yesterday. Now they have a shout to buy and hold more.
Better now than a day before the merger.
Thank you. We are in this together. We will win if we hodl.
Excellent post. Lock the float. I've been saying g this since last week, only 35 million shares outstanding. Buy and hold all the way.
🚀🦍
"We need to be more consistent with our message..."
Yep. On this and several other things as well.
Thanks for this post. I'm new to investing actively. Great info.
Also unless you are INCREDIBLY good at trading it is not reccomended to ever try to sell and buy back. Day trading is way too commonly used and people make it sound like it is easy.
The best day traders in the world are right around 6/10 times. They do it for a living. The odds of you succeeding trying to sell high and buy low comsistently are near zero.
"Buy low, sell high" is the golden rule of trading. Nobody is talking about day trading. Short-term trading is very safe, especially if you do something like observe stocks hitting lower and upper resistance points consistently and just buy and sell at those resistance points. It works because long term traders for some reason are content to eat the loss on the way up and on the way down.
I did great back in the day buying and selling certain stocks that just seemed naturally volatile - up $10 today, down $10 tomorrow, backup $15 the next day ... etc. I just kept putting in buy orders, and then, sell orders, every few days. But - I once got caught holding the bag on a high-tech stock that died (dropped to zero), and I probably gave back all my gains from the preceding 6 months! In the meantime, stocks like Costco and Oracle have given me returns in the region of 1,600% and 900% (since 2000).
The deep state have no choice, they have to short DAWC. They have to stop it and shorting it is the only way. If TMTG takes off, becomes popular, it will destroy the old system the deep state has built. Buy and hold!!!! If TMTG becomes as big as I think it will be one day, the small gains you are taking now will pale in comparison to what you will make long term. Buy and HODL!!!!
Am I the only one who keeps reading that as TMNT?🐸
Do you think that GME was part of something to see if people would be able to stick together in anticipation of this one? Like a pre run.?
Hell ya, very well could have been.
Wonderful post. All the greedy pricks better sit and self reflect on this. This is bigger than our own financial gain. Way bigger. Biblical.
So forgive me for my ignorance.
I bought through etrade, should I sell and get them through continentalstock? Or can I transfer them? I dont want my shares being whored out with out my knowledge!
Thanks for the knowledge!
I am down at the moment but my plan was always to hold long from the beginning. I only bought what I am comfortable losing. This is money was just sitting in my Etrade account losing value to inflation.
HODL
I came here to say this! Well stated. It’s easy to hold when you understand what is going on.
I'd love to join this fight with y'all, but don't really know much about it except that I have a 401k through work. I have recently gotten the fidelity trading app but haven't actually made any purchases. I have some disposable income. I'd love to buy some GME and Trump stock. Any pointers y'all have would be greatly appreciated.
Do not use Robinhood. Instead, use Fidelity. While nearly all the brokers are corrupt in some ways, during the GME run up in January, Fidelity was one of a very few brokers that did not disable buying while most other brokers did.
This does not excuse Fidelity but gives them more legitimacy than the platforms who blatantly committed fraud by turning off the buy button.
Also, Fidelity has recently announced that they allow trades to go through IEX, which is an exchange that cannot be manipulated by dark pools. Which means transaction recorded on the IEX will reflect accurately.
If you do purchase GME, I would suggest creating an account on Computershare and buying directly from them or buying from Fidelity and than transferring it over to Computershare.
As for the Trump stock, you have several options:
DWAC - Direct shares of the SPAC which will convert into the company stock once the merger is complete
DWACW - Which is a warrant contract which means for every two DWACW shares you own, will equal one share once the company has completed its merger. These do not become activated until September 2022.
I personally recommend the DWAC as warrants are a bit complicated and you have to wait for them to mature.
Also, Trump has some news in regards to Truth Social coming up on Thursday. It might possibly be a nothing burger which would drive the price further down, or it may be bullish af.
So you can speculate whether you want to get in now, or after the announcement. Either way, the price is either going to move up and down bigly after the announcement.
If you do believe in the long term aspects of the stock, I would say any buy point is pretty much good to go as we are still in its infancy and this is only the 4th day of trading the stock.
Let me know if you have any questions.
So Dwac is not Trump stock yet. That's TMTG, however, they are merging, so DWAC is what I should buy? Thanks for the info btw!
Everyone needs to understand this.
Where did you see dwacw is 2 to 1, I read it was 1 to 1 with a 11.50 conversion charge per share, so at 25 I can convert at 36.50.
https://seekingalpha.com/article/4461872-dwac-buy-the-warrants-sell-the-stock
Banks can't lend out your shares if they're bought in a cash account and not on margin.
Shares purchased with margin can be freely lent out to any other entity.
That's how it was when I worked the back office for an investment firm.
Is this the same for brokers?
Yes I worked for the banks discount brokerage. We had these entities called prime brokers, they are part of the bank and would lend securities out to hedge funds. As back office we could only lend out the shares purchased on margin.
DTC is the depository in the USA, all of your electronic shares are deposited with them. They have two accounts segregated and free. You were unable to borrow any shares purchased with cash, everything goes through them.
The problem is the vast majority of people are in on margin so there are always shares to borrow.
That's very useful information Thank you!
I'd better do some research to see if I can understand it better.
My shares are currently in an ISA (UK tax free savings account) which is administered by an online broker. For US shares, they work with Drivewealth and those shares are not specifically DRSed so I assume they can be currently lent out. Last I heard, my broker said they don't have the ability to DRS.
It would depend on if your shares are wholly-owned or margined.
In Canada we have tax free accounts as well but those are strictly cash accounts and by default shares purchased in this account cannot be borrowed.
I'm sure there are other ways around it but I can't speak on that, if we lend out more shares than we had to freely lend out we get these things called segregation warnings which can become regulatory issues.
We can only lend out from free shares as mentioned margined shares.
I dealt with DRS' before but usually these were from clients that had the actual share certificates in their name. It costs a lot of money to do this for a discount brokerage, maybe that's why they can't do it, I think you would have to contact the actual transfer agent to do something like this but I can't remember.
It's a pain in the ass if you wanted to deposit your shares it could take days.
Thank you very much. I hope it's the same in the UK.
Spot on timely.
Bought at 12.74 have to say I was tempted the next day when I saw it hit 175. But I’m holding I believe this will be yuuuge!!
Thanks for this post great info!!
Anyone got a clue how I can buy this stock In Canada, preferably with crypto?
I don’t think there is a way to buy a stock with crypto unless you have an account with a crypto bank. Brokers require that you link your bank account. A crypto debit card would not suffice.
I opened a Questrade account and over the last couple days purchased 35 fat juicy shares through that. No crypto, though.
What I don't know is whether or not I can DWAC from Canada.
You can do a DWAC from Canada