No longer a ‘Meme Conspiracy’ - GME affirms they DID deliver shares to DTCC
(news.gamestop.com)
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So, in layman’s terms for this crayon eating ape to understand, what does all that mean?
They gave the shares to the group that keeps ledgers of who has shares and what. And then that group instructed their brokers to treat it as a forward split f2 instead of a dividend split f6.
Essentially instead of giving everyone (on paper) 3 more shares per share they told the brokers to multiply existing shares by 4 essentially taking one existing share and splitting it into 4. One action divides the price by 4 the other should of resulted in no price action.
GameStop was very clear in their filing how to handle it and that of the dtcc and brokers did it wrong they would step in and do it themselves. I’m waiting for that part now.
So, wait .. a person who had 100 shares now has 400? Is that what you mean? And what you're saying is that this DTCC (whatever that is) didn't follow instructions and did something wrong, so now they're in trouble?
Some companies just do a share split. IE. they instruct all investment companies to (in this case) multiply all shares by 4 and dividing the price by 4.
Gamestop did a stock dividend split. So Gamestop increased the total number of shares by 4 and handed the DTCC something like 200m shares to divvy out to the investors. As of right now, all we know is investment companies were instructed by the DTCC to just multiply their shares by 4 and were never given any of the newly issued shares. Where are they?
Ohh ... thank you for explaining more. Where are they, indeed?