Before computers, paper certificates were mailed to you - the investor - with your actual name printed on every share you own. Nowadays book entries are used in place of paper certificates. Originally, this was intended purely to speed up the process and get rid of unnecessary paperwork. The multiple institutions created to handle the book entries and clearing of trades have, over the course of the few decades, merged into a single private organization known as the DTCC (Depository Trust and Clearing Corporation).
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When you use a broker to buy stock the DTCC’s subsidiary, the DTC (Cede & Co.) is the name that is entered on the “books” at Computershare for every single broker held share. You are only the “beneficial owner” on your broker’s books, who is the “beneficial owner” on the DTCC’s books. The DTCC is the primary owner, the broker the secondary owner, and the average investor is a tertiary owner on the share that they bought and paid for.
The only way for an average investor to be the primary owner of any shares of stock they purchase is to direct register that stock with the transfer agent for the company. It puts them on the same level of ownership as the DTCC - directly registered in the ledger of the company whose stock they own. Direct registered stockholders have true possession of their investment and are listed by name in the company’s ledger. Shareholders who hold through brokerage companies cede their ownership rights to others (like the DTCC’s "Cede & Co" & broker-dealers). Leaving them vulnerable to short selling.
Also you can DRS shares held in a retirement (IRA) account. Its a bit more involved and can cause tax events. This website gives guides on how to do it:
There are multiple ways to directly register your shares from your IRA
These guides work for any US company and any US transfer agent. Just swap out GameStop's and Computershare's details for your company and transfer agent.
I see the caveat that moving to Odyssey can trigger costs and slow transfer back to a brokeraqe for sale.
So, by DRSing, I effectively take my stocks in a holding position and have to use a brokerage to sell and/or buy more? I would appreciate as much insight as anyone is willing to offer, as I need to fully understand how it works before making the move from Fidelity.
I can't answer for Odyssey, but Computershare (transfer agent for GME) has direct selling from their website.
The only delay would be if you want to transfer them back out to a broker before selling. But why would you ever want to do that? That part is probably there in the interests of full disclosure which is fair.
Hope someone else can answer the selling direct from Odyssey question.
I think option 3 (moving your shares to Odyssey Transfer and Trust Company) is probably the safest
For people unsure about the whole DRS thing, this website explains a lot.
It's specifically for GME and their transfer agent Computershare, but a lot of the info is the same for any transfer agent (like Odyssey).
https://www.drsgme.org/why-register-shares
Also you can DRS shares held in a retirement (IRA) account. Its a bit more involved and can cause tax events. This website gives guides on how to do it:
I have Fidelity the scammers, what do you guys think? Should I move my shares to Odyssey Transfer?
If Trump's company says soz then yeah.
Plus you should DRS everything else you own!
I see the caveat that moving to Odyssey can trigger costs and slow transfer back to a brokeraqe for sale.
So, by DRSing, I effectively take my stocks in a holding position and have to use a brokerage to sell and/or buy more? I would appreciate as much insight as anyone is willing to offer, as I need to fully understand how it works before making the move from Fidelity.
I can't answer for Odyssey, but Computershare (transfer agent for GME) has direct selling from their website.
The only delay would be if you want to transfer them back out to a broker before selling. But why would you ever want to do that? That part is probably there in the interests of full disclosure which is fair.
Hope someone else can answer the selling direct from Odyssey question.
Call Odyssey and let us know!
Moving DJT to Odyssey Transfer would be the same as moving GME to ComputerShare. I did that for GME and plan to do this for DJT as well.
Thank you.