Gamestop quick rundown
(www.youtube.com)
You're viewing a single comment thread. View all comments, or full comment thread.
Comments (9)
sorted by:
So those of us holding GameStop shares with our broker will just be told that our shares are cancelled or whatever, right? They actually aren’t going to pay anyone out? That’s sort of my hunch. They will just say, “Sorry, those shares you bought were fraudulent. Here’s your original investment back. Our bad. Thanks and come again!”
The shares are not in your name when held with a broker. The theory is that shares with brokers are mostly IOUs and were never actually secured.
Directly registering with Computershare transfers the share from your broker to a custodian (computershare) who holds the shares in your name. This forces brokers to actually secure the share and transfer it. It also provides full transparency to the company. Gamestop has started to disclose how many shares are directly registered in their quarterly earnings reports. Once a share is in your name, it can't be sold without your consent.
I believe the broker has the ability to sell your shares in the fine print. Also they arent in your name with the broker so essentially you have synthetic shares. You have zero ownership unless you direct register with computershare.
Not all tickers are available in Computershare; I plan to transfer those that are and keep those that aren't with the broker. However, should we even buy stocks that aren't available on Computershare if the broker could likely screw us later?
While it is a nice feeling to send your stocks to a company like computershare to hold in your name and address, I do not believe any other stock has the potential to overthrow wall street as much as gme.
Gme has something like 13-15 million shares registered directly now...almost halfway to the entire free float of the stock. No other stock is coordinated enough to pull off what gme and its investors will pull off.
To answer your question the stock market is a rigged game and I would not participate in it any longer. Same with crypto right now.