Gamestop quick rundown
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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.