AFAIK If you are HODLing thru Fidelity, you do not need to DRS shares.
Periodically you will get a banner popup from Fidelity asking if you would like to earn additional income on the stocks you own by loaning them out. I always decline.
Sidenote: This news is hitting the financial websites and seems to have driven up share prices by 5$/share, (😊) unless there is other news I've missed.
With GME there was research that suspected many brokers lend them out no matter what.
They are only giving you an IOU most of the time without actually going and purchasing a share on your behalf.
All non DRS'd shares are a fraudulent mess of digital IOUs that don't even have your name attached to them, and this allows all sorts of bullshit to happen. And then you get into 'rehypothicated shares' which are basically them trading shares that don't actually exist.
DRS through transfer agent is the only way to actually own them in your name, which also takes them out of the IOU pool.
AFAIK If you are HODLing thru Fidelity, you do not need to DRS shares.
Periodically you will get a banner popup from Fidelity asking if you would like to earn additional income on the stocks you own by loaning them out. I always decline.
Sidenote: This news is hitting the financial websites and seems to have driven up share prices by 5$/share, (😊) unless there is other news I've missed.
NFA.
With GME there was research that suspected many brokers lend them out no matter what.
They are only giving you an IOU most of the time without actually going and purchasing a share on your behalf.
All non DRS'd shares are a fraudulent mess of digital IOUs that don't even have your name attached to them, and this allows all sorts of bullshit to happen. And then you get into 'rehypothicated shares' which are basically them trading shares that don't actually exist.
DRS through transfer agent is the only way to actually own them in your name, which also takes them out of the IOU pool.
I tried to find out if etrade could use mine, if I could opt it or whatever & I couldn't find any info on their site.
DRS is still the only means of actually owning the shares in your name.
This website explains it all:
Fidelity has one of the larger coffers, and probably wont go bankrupt (unless GME MOASS happens first, then it could get...interesting)
But trading restrictions are a very real possibility, even with a large coffered company like Fidelity.