r/Superstonk Lots of accusations back-and-forth between the DRS and non-DRS crowd. However there are still some Apes who don't seem to understand what the debate is about. This very clear explanation by u/aironjedi should help, if you are still unsure:

posted by u/Region-Formal on 22 Jul 2022
posted by u/hatgineer on 22 Jul 2022 288▲

To the best of my understanding, they are not even your broker's shares. They are supposedly DTCC's and it's IOU's all the way down to you. Your broker can keep its word to not loan out your share, but anyone further up the chain can still do it and there is nothing you or your broker can do about that other than to DRS. Not financial advice.

posted by u/InternationalMatch13 on 22 Jul 2022 88▲

Its a damn web of lies is what it is. DRS is the way to investor empowerment!

posted by u/CandyBarsJ on 22 Jul 2022 68▲

Yeah CEDE & Co. Is one of the biggest trusts in the world that actually owns all the wealth. Since its part of DTCC, well... They have shareholders 👀 guess who they are? Then guess who those shareholders are again? 👀

Scenario: What happens when CEDE &Co. Suddenly decides to cutoff from the system? All your claims are 100% "goodbye" worth 0! Not saying it will happen but hej.... "Cyberattack" anyone? 😂😏

Equiniti, Computershare, Broadridge (there are more transfer agents) take the power back into your hands and full control. No one can touch it unless you decide otherwise.

posted by u/PlutoPlex on 23 Jul 2022 16▲

Yeah, the broker can say they're not lending your cash account shares but they have a "shady brother in law" who will borrow and sell your shares because they can "reasonably" find them to borrow from the broker

posted by u/UncleBenji on 23 Jul 2022 14▲

This is accurate

posted by u/Imbetterlookingthanu on 23 Jul 2022 6▲

It’s literally called a locate and is based on nothing but a boilerplate statement that you reasonably thought you could locate. That includes shares held in cash accounts that you “believe” they can’t loan out.

posted by u/flibbidygibbit on 23 Jul 2022 4▲

They're the property of CEDE. It's part of the chain of fuk

posted by u/DarthDillinger on 23 Jul 2022 2▲

Absolutely correct

posted by u/Volkswagens1 on 23 Jul 2022 1▲

Correctly absolute.

posted by u/patchyj on 23 Jul 2022 0▲

Shares === turtles

posted by u/RichPay5064 on 22 Jul 2022 134▲

Beautiful explanation

posted by u/Region-Formal on 22 Jul 2022 86▲

Link to original comment:


There are some Apes who cannot DRS, I know that. However:

(1) If you are in the US and have your shares in an IRA account, there are a number of methods detailed in this sub explaining how to go about directly registering those shares. Some may say those DRSed IRA shares are still not in one's own name. However, neither can they be lent out for short selling, and real shares have to be located for DRSing, so effectively the same as a normal DRS process.

(2) Outside the US, there are plenty of Apes who want to DRS but are unable to because their broker simply does not have a mechanism to do that. I was one of those Apes. Personally, I felt the risk of keeping my shares in such a broker to be far too great a risk. So what I did was sell out from the local broker, took the tax hit, re-bought on IBKR (which is pretty much available in every country) and DRSed from there. Yes, it meant I had to pay a but of tax...but I fell soooooo much happier now, knowing I won't be left behind when the rocket takes off, as 90% of my shares are now DRSed as a result.

As for those who are aware of the potential implications of keeping shares in a shitbroker, who can force close their positions when we MOASS, but still choose to do so anyway despite being able to DRS...I am not sure why you would continue this approach. Much better risk management would be to try and DRS at least a couple of shares, so that you cover all bases and possible eventualities.

posted by u/Zeromex on 23 Jul 2022 -15▲

Sell and Buy help them, you just said it, you lost some money, you probably didnt Buy as many as you has, thats why we HODL, we Buy and HODL, DRS when you can but selling is what we were screaming since the beggenning not to

posted by u/daronjay on 23 Jul 2022 31▲

I gained shares when I did it.

The original idea of simply not selling as means of squeezing them has been shown to be completely inadequate on its own. We now have more than a year of can kicking.

DRS is the only mechanism they can't control.

posted by u/honeybadger1984 on 23 Jul 2022 30▲

It’s okay to sell in order to facilitate DRS. It’s old dogma to say you can never sell. If you’re stuck in a shit broker like eToro, get out of there. Transfer and DRS. If they don’t allow either (they don’t) then sell everything and move to an entity that will DRS. Period.

posted by u/Navylawyer on 23 Jul 2022 1▲

I’m stuck on eToro but unfortunately I’m also in the red so I got to decide whether to take the red hit and DRS or wait until it’s green and then do it

posted by u/FowlersRedBeard on 23 Jul 2022 6▲

I think you have to ask yourself: what will eToro do when moass finally hits? Will you even have shares to sell or will they have 'done that for you' at a shit price? Why not sell some, get to a broker that allows DRS and then DRS from there? Just to feel a bit more safe?

posted by u/Navylawyer on 23 Jul 2022 2▲

That’s a good shout. If I do it piece by piece then more security and less of a hit!

posted by u/Blaminal365 on 23 Jul 2022 5▲

If you think you can trust etoro read their t’s & c’s cos it literally states they can close your positions if they want to

posted by u/Navylawyer on 23 Jul 2022 2▲

I completely agree mate I don’t trust them at all. I just hate selling in the red 🙈

posted by u/Blaminal365 on 23 Jul 2022 3▲

Okay that’s fair I had the same worry but then I thought what if I were to miss out on MOASS altogether from etoro screwing me over?

posted by u/SatansBoobieTassel on 23 Jul 2022 4▲

Wouldn't you be better to get out while in the red? If you're going to immediately buy again in another broker at least you won't have capital gains or taxable income because you technically lost money.

But you wouldn't have actually lost money because you would be immediately buying at that same price again. So you're right back in it at the same price you sold at. It's kind of like a transfer with extra steps at that point. I'd say it's a last resort but if you aren't allowed to DRS or transfer to another broker because your current broker is shit I would say it's still your best option in that scenario.

What do you think?

posted by u/Navylawyer on 23 Jul 2022 6▲

I think you’re absolutely right. I just needed to hear it from other apes i would be doing the right thing!

posted by u/SatansBoobieTassel on 23 Jul 2022 1▲

I just fully believe in DRS and at this point I'd be willing to do anything to achieve that goal.

The apes never sell narrative made sense when we didn't know DRS existed. We thought selling gave brokers a way to fuck around with our shares. Now we know that they can manipulate them in any way they want just by holding them in THEIR accounts. That's right it's not your account it's theirs. You're just paying them to use it. Get those babies in YOUR name any way necessary and let's end this thing once and for all.

Love you ape 🫶

posted by u/Maleficent-Rub-4805 on 23 Jul 2022 5▲

I always just show people this video. If your shares are within the DTCC system they are likely IOUs /synthetic shares. The only way to guarantee they are real is to DRS, it’s as simple as that 👍 https://youtu.be/I0WXg5T3cBE

posted by u/Ladakhi_khaki on 23 Jul 2022 4▲

Here's another beaut.

Ryan Cohen is only interested in candidates who work.

So when the day comes for GameStop to leave the DTCC, you'd want to be a candidate.

DRS is work. Got to do that Work.

posted by u/floodmayhem on 23 Jul 2022 2▲

How can you be an ape while being anti-drs?

posted by u/Leofleo on 22 Jul 2022 124▲

Why go to college when Superstonk is free?

posted by u/flavorlessboner on 22 Jul 2022 35▲

I'm pledging in Thigh Gappa Clappa

posted by u/nonmullet2 on 22 Jul 2022 13▲


posted by u/donutBADbagelGOOD on 23 Jul 2022 5▲

Zeta Epsilon Nu aka ZEN

posted by u/rdicky58 on 23 Jul 2022 2▲

Tau Iota Tau Sigma aka TITS

posted by u/tenchi8765 on 23 Jul 2022 2▲

Epsilon Rho Rho aka Robot House

posted by u/Saxmuffin on 22 Jul 2022 10▲

Debate? Ownership vs timeshare. Not rocket science

posted by u/honeybadger1984 on 23 Jul 2022 9▲

Also secured v. Unsecured shares. Computershare leaves your shares alone and they can’t be borrowed, lent out, shorted, etc. When you’re in a brokerage, your share is subject to Cede & Co, DTC, brokerage, hedge funds, who all may try to get at your shares. You simply don’t know what they’re doing behind closed doors. If you’re a beneficiary, they’re not your shares.

For those saying you’re safe in a cash account, I argue no. Look up SEC violations; there have been examples where brokers lent out cash shares for profit without informing the customer. When they were caught, they admitted to no wrongdoing and paid a fine to the SEC. So there’s no guarantee they never fuck with your shares, because remember there’s a monetary incentive to lend them out, and it’s a tiny slap when they get caught. 🤷‍♀️

posted by u/Stickyv35 on 23 Jul 2022 0▲

At least with college you (maybe not actually you) get a lot of ass. On Superstonk I have people trying to shove crayons up my ass and lure me behind the Wendy's dumpster like I'm an ATM.

Was that too specific? Hmm, strange.

posted by u/YourFaajhaa on 22 Jul 2022 76▲

This is the single most important piece of information that needs to be spread around to the general public.... OT just for moass, not just for GME, but for all trades.

People locking shares in their own names at a massive scale will make real change in the market... When the norm becomes for shares to be registered in our own name, THAT will limit HFs abilities to fuck with our money.

Ps: i need around 30 more karma points to be able to post on Superstonk.... Help an ape out ya chimps!

posted by u/SayTheWord-Beans on 23 Jul 2022 6▲

Add a few more replies that I can upvote for free karma.

posted by u/bvttfvcker on 23 Jul 2022 45▲

We’ve been over this for a year. If you haven’t figured it out yet then you’re just willfully ignorant.

posted by u/Ok_Island_1306 on 23 Jul 2022 23▲

This is exactly how I feel too: after all this time you need to have it spelled out for you like this? Really?

posted by u/NormStan973 on 23 Jul 2022 3▲

Haha, try convincing 🍿

posted by u/Ok_Island_1306 on 23 Jul 2022 8▲

I wouldn’t even try

posted by u/SuperSquirrel13 on 23 Jul 2022 9▲

The thing that convinced me to DRS was, the whole definition of insanity and doing the same thing over and over. If we want something extraordinary to happen, we can't keep doing the ordinary.

DRS is something different and new and something that hasn't been done on this scale before. That is why I sold all my etoro shares, bought on IBKR and DRS'd.

posted by u/_zb on 23 Jul 2022 5▲

Thank you. This is now the equivalent of people who were told to get out of robinhood. Some people can’t be helped.

posted by u/loggic on 23 Jul 2022 4▲


For real.

posted by u/Ok_Designer_Things on 22 Jul 2022 43▲

It's been over a year that we knew DRS was the way. It's literally one of the only ways you as an investor can grab this system by the balls and we are STILL confused about it?

DRS your shares.. I mean.. seriously at least learn about DRS if you can please...

posted by u/str8ridah on 23 Jul 2022 15▲

I don't understand all these morons that haven't DRS yet.

posted by u/throwaway_when_moon on 23 Jul 2022 1▲

Neither do I. Not being able to is one thing. Not wanting to is just free loading off everyone who is on top of running a stupid unnecessary risk

posted by u/supbrah_ on 23 Jul 2022 1▲

let them freeload all the way to SIPC insurance.

posted by u/ExtremePrivilege on 23 Jul 2022 1▲

It’s gotta be 99% of apes, too. If the MOASS theory is correct it relies on the fact that the float has been shorted 500%, 800%, etc. That would mean there are hundreds of millions of GME shares being held out there. And in 18 months we can only manage to DRS 14 million shares? That’s like 2% of what is likely out there.

Either GameStop isn’t shorted hard at all, or 98% of apes aren’t DRSing. Either way, that’s a terrifying reality. We’re either wrong about everything or the stupidest, laziest group of investors on the planet. Fucking tragic.

posted by u/Trap-X-Zero on 22 Jul 2022 40▲

Here's an easy answer... do the bank lend out your money? YOU GODDAMN RIGHT!

posted by u/akatherder on 23 Jul 2022 -5▲

The dude mentioned it's a cash account because Fidelity has stated repeatedly they don't lend shares from cash accounts. I'm pro DRS but the reply completely ignored that.

posted by u/Trap-X-Zero on 23 Jul 2022 17▲

Wikipedia cede & co. We don't lend your shares ( ha technically it's our shares) in cash account. Bet their wording will get them out of any legal troubles. They can say " well yeah, we can't lend it if it's in your name but you brought it with us and we're holding it for you. Technically it's in our name and we can lend it out."

posted by u/Badmedicine123 on 23 Jul 2022 2▲

If they have a bigger gain from lending out shares even if it’s breaking the rules, what’s paying a fine for them?

posted by u/SgtSiggy on 22 Jul 2022 25▲

Good reminder for all:

  1. Gamestop only has ONE transfer agent/broker on their website (hint, its not fudelity!) https://news.gamestop.com/contact-us (COMPUTERSHARE)
  2. Gamestop is UNIQUE as a company for listing DRS numbers on their quarterly reports

MOASS is tomorrow when Apes realize RC has been cellar boxing the SHF, but its up to us to drop the hammer by DRSing


posted by u/honeybadger1984 on 23 Jul 2022 2▲

That’s a nice way of putting it. RC is Thor. But we’re his fucking hammer. Thor isn’t as useful without Mjölnir in his diamond hand 💎 🤚.

posted by u/CosmoKing2 on 22 Jul 2022 23▲

.....and as I understand it (having a Fidelity account) even though they say "we don't loan your shares out." That is just semantics. You actually don't have shares, you have IOU's until you decide to transfer or cash out. This is because something like 80% or retail investments lose money (now we know why) and they can buy them for a fraction of what you paid and pocket the rest.

The fact that this is legal is appalling. It's in your broker's best interest for you to fail, so of course they will loan out your shares as soon as your deposit clears. The shorts they loan them to help the broker take your money.

posted by u/ASchoolOfOrphans on 23 Jul 2022 5▲

The semantics maybe the difference between locates and actually lending shares.

I haven't seen the actual mechanics of locates, but neither have anyone seen any real mechanics of the market cause it is not transparent by design.

It is assumed that base on their definition

Regulation SHO from the Securities and Exchange Commission (SEC) requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed (so that it can be delivered to the buyer on the date that delivery is due) before effecting a short sale in any security; this is known as the “locate” requirement.


More details:


Seems to me that they can create counterfeit shares for short sellers from locates base on "reasonable" grounds of your shares in the cash account (retirement accounts, mutal funds, index funds, etc) without actually lending out your shares when you ask them if they do.

I presume for margin accounts, they just straight up lend it.

Both are possible sources for rehypothecation of shares which can create counterfeit shares.

posted by u/loggic on 23 Jul 2022 3▲

Trying to mess around with cash accounts is a lot more difficult for them if they want to have any leg to stand on when legal oversight gets involved. Still, it isn't impossible.

The easy way: oops! We made a clerical error and "accidentally" loaned out more shares than we should have. Clumsy me.

The hard way: if there's ongoing, market wide FTRs happening (which aren't reported to the general public at all, unlike FTDs), then the broker could request that the NSCC place their FTRs in a special account. The whole purpose of that special designation is for brokers to have a place where they can put FTRs that still satisfies their asset segregation requirements for cash/retirement accounts. By intentionally requesting certain types of delivery within CNS and then moving shares out of the CNS system entirely (for use in direct deals that are settled elsewhere, such as the Obligation Warehouse), a broker could theoretically fulfill their duties and have some level of plausible deniability. That being said, these FTRs end up getting priority for settlement over basically everything else, so they would be short-lived. They move the shares elsewhere, likely make them available to borrow, the hedgies borrow them & short into the lit market, which then settles that particular FTR. That brings us right back to where we were, except official short interest is a bit higher, there was a bit of selling pressure, and the broker is making money off of a "loaned share" that's basically just a puff of smoke from an accountant's pencil.

posted by u/CosmoKing2 on 23 Jul 2022 1▲

Thank you for this. I still don't know the proper terms for these transactions. Could they use your shares as markers for loaning to shorts before actually applying them to your account? i.e. instead of IOU's to the retail investor, they are IOUs to the hedge?

Early on a read a lot about how they never even locate shares, figuring you will likely (80%) lose money and only locate the shares when you want to stop the bleeding. My guess is the other 20% is retail DRSing out of the brokerage.

Again, not knowing the proper terms, I believe the SEC enables brokers, hedgies, and MM's to create an infinite supply of stock, based in whatever holdings are on the books. Whether those holding have ever been fulfilled for those obligations remains to be unseen.

posted by u/ASchoolOfOrphans on 23 Jul 2022 2▲

We don't know, it's not transparent, we can only make guesses from what we can see and what they tell us.

It depends on the brokers, As Fidelity is the quickest to DRS, i would give them more benefit of the doubt.

Could they use your shares as markers for loaning to shorts before actually applying them to your account? i.e. instead of IOU's to the retail investor, they are IOUs to the hedge?

That is one possibility, and these possibilities are not restricted by themselves. It is also possible that both the broker and short seller are collaborating on this, as we saw from Jan's collaboration to restrict the buy of GME.

Early on a read a lot about how they never even locate shares, figuring you will likely (80%) lose money and only locate the shares when you want to stop the bleeding. My guess is the other 20% is retail DRSing out of the brokerage.

Also another possibility, and could had happened at one point and may have stopped or they continued to do so.

The various incorrect cost basis with absurd dates and price can be an indicator the theorized illegal practice of CFD (contract for difference) in the US.

Prices can be manipulated by spoofing (inputting low bids and canceling before it goes through), and routing buys through OTC (over the counter, aka dark pool).

Counterfeit shares could be from rehypothecation of ETFS, mutual funds, brokerage accounts (Street names).

They also have T+35 to FTD so they can "print" IOU to be shorted when they need.

Options can also be used as "reasonable grounds" but that's even more less transparent than everything else as we do not know if they hedge and what they choose to hedge, using retail covered calls, or just writing a contract themselves, along with other factors I may not heard of.

With so many tools at their disposal, and little transparency, a deep capture government and justice system, the safest weapon is DRS.

I also do not trust options during moass as any fines or punishment they face for not honoring the contract is cheaper than honoring the contract if they even lose or is unable to drag out that court case for decades.

Also like to note I am not an expert, this is just the things I have picked up from reading some DDs and my own interpretation over the course of this saga and I could be wrong so feel free to correct it.

posted by u/CosmoKing2 on 23 Jul 2022 2▲

Thank you for taking the time to explain this in relatively smooth terms. At this point, I expect fuckery at every point in the physical stocks journey.

So, glad I DRS'd and took all the middlemen out of the picture. I will do so with any other purchase I make in the future.*

*Only if the current system in the US is set on fire and scraped or I move to a charming European community where the markets are more fair and I can have a hand in keeping them fair. Even if the US rebuilds the markets, it will be even more corrupted in new ways.

posted by u/pale_blue_dots on 23 Jul 2022 1▲

Using Occam's Razor, Hanlon's Razor, knowledge of human nature (i.e. greed, selfishness, etc...), and history itself -- we can see that there's a very, very, very, very, very, very, very good chance that the Wall Street regime and network is backstabbing and pissing down our grandmother's and grandfather's and mother's and father's and entire family's throats and calling it pure, beautiful water of the most heavenly essence.

No cells, no sells.

God damn Wall Street to hell.

posted by u/DeepFuckingAutistic on 23 Jul 2022 -8▲

FUD and plain wrong

posted by u/CosmoKing2 on 23 Jul 2022 1▲

Ape friend, I'm open to being educated. That's what this sub is all about. I'm just telling you what I've learned here. If it's wrong, let's correct it together.

posted by u/DeepFuckingAutistic on 23 Jul 2022 1▲


when you buy a share, the broker sends an order out and delivers you a share.

it is not an IOU untill its lent out and most of all broker held shares are not lent out (those would be visible on reported short interest).

brokers have shares.

Superstonk angry mob claims only DRS has shares, brokers never buy shares and only give you IOU placeholders.

naked shorts are not lent out shares, even if your broker is being used as a locate, your brokers might not even know about it, the shares stay with your broker, the naked short is an IOU to the buyer of the share who expects a delivery of the share.. failure to deliver is FTD.

superstonk parroted FUD claims all shares are IOU's when realistically most lent out shares are from insitutions, not retail.

60 million float (presplit) is 30 million shares held by insitutions, 15 million are reported short (IOU's).

and excess short is naked short, not brokers fault or responsibility.

posted by u/Revolutionary-Ad4055 on 22 Jul 2022 13▲


posted by u/LavishnessOld8039 on 23 Jul 2022 12▲

Finally gave in and DRS my shares out of Fidelity. That chat agent was a little bitter… 😆

posted by u/SaltyRemz on 23 Jul 2022 10▲

Someone tag that retard so he can re read this!

posted by u/bluestar4u on 23 Jul 2022 10▲

A little louder for those in the back that still wear helmets.

posted by u/HughJazhol on 22 Jul 2022 9▲

Biggest DRS wave yet incoming as these shares settle…

posted by u/demoncase on 22 Jul 2022 7▲

Basically, DRS is the withdrawal of crypto from a CEX to your wallet

not on your name, not your shares

not your keys, not your crypto

simple as that

posted by u/honeybadger1984 on 23 Jul 2022 1▲

I pointed this fact out in another investment sub, and they said that’s not true. Regular investors can’t stand the DD concerning beneficiary shares, and how you can’t tell if your shares are real or phantom. They just don’t get it.

posted by u/millertime1216 on 22 Jul 2022 7▲

Great catch OP! Great comment u/aironjedi !

posted by u/aironjedi on 22 Jul 2022 5▲


posted by u/drawsomeaweaome on 22 Jul 2022 6▲

So even when Fidelity isn’t directly the main baddie, they are helping the baddies.

Cut off the help to the baddies.

posted by u/Thorzorn on 23 Jul 2022 4▲

Theres a non DRS crowd?! Lmayo

posted by u/honeybadger1984 on 23 Jul 2022 2▲

I know, right? Ryan Cohen has shit posted multiple times about comp 💩 🪑. It couldn’t be more obvious. DRS leads to oops, MOASS.

It comes down to whether you believe in Ryan Cohen. If you do, DRS because he believes that’s the way. Dr. T has repeatedly stated DRS is the way to take control and get away from phantom shares and manipulation.

And if you don’t believe in DRS, then why are you in this play? Seems like a man without a country to me.

posted by u/Ape_Wen_Moon on 22 Jul 2022 3▲

Here's an interesting post I made 3 months ago, not related to lending but I think clearly illustrates the ownership component.


posted by u/scavenger313 on 23 Jul 2022 3▲

How do I DRS an IRA without it being a taxable event?

posted by u/akatherder on 23 Jul 2022 2▲

There were a couple options.

One is opening an account with morningstar as the custodian, which costs a few hundred dollars. That was kind of confusing because I don't get how (yet another) entity holding my shares makes a difference... But they do get registered in CS to morningstar "FBO your name" (for the benefit of YOU).

I think I read that if you are in the red you can withdraw without a taxable event. If your average purchase price > $35.78. I couldn't find much info clarifying that. Of course taxes aren't due until next April either.

posted by u/honeybadger1984 on 23 Jul 2022 1▲

There’s DD out there. You transfer to a custodian who keeps it as an IRA but it’s not under a broker. So it’s the equivalent to DRS as it belongs to you (name and social security number), and your custodian won’t fuck with your shares by lending them out, shorting them, etc.

Note it’s like $160 annually for them to serve as your custodian. I wish Computershare just offered DRS for IRA shares but they don’t support it. If they did, hundreds of millions of shares in IRAs, pensions, whatever could go to Computershare for self directed retirement, but they don’t support it. 🤷‍♀️

posted by u/sacredfoundry on 23 Jul 2022 3▲

This doesn't even mention sold not purchased shares. Sometimes the write you an iou and never buy the share.

posted by u/SirUptonPucklechurch on 22 Jul 2022 3▲

Up you go

posted by u/intheMIDDLEwityou on 22 Jul 2022 3▲

DD has been pointing to broker fuckery since the beginning, maybe now more people will see the merit of DRS.

posted by u/CptnBarbosa69 on 22 Jul 2022 2▲

Maybe he could add that they also use your shares during proxy votes against company decisions that are detrimental to both you and the company. They will vote on behalf of you. With DRS only you get to use your shares to vote!

posted by u/jackofspades123 on 23 Jul 2022 2▲

Missing the 3rd thing it does...gives you full voting rights

posted by u/tylerfulltilt on 23 Jul 2022 2▲

The important part of DRS is that it removes the shares from the DTCC. Every share in the DTCC can be used as a "locate" for a short. A "locate" is when they naked short a share, but it's okay because they've "located" a share that can theoretically be used to cover the short.

So remove your shares from the DTCC and it becomes harder for them to not cover their naked shorts with "locates"

posted by u/fleshfarm-leftover on 23 Jul 2022 2▲

Yeah, and DRS can be counted and disclosed publicly, so it’s got that going for it too

posted by u/AltoniusAmakiir on 23 Jul 2022 2▲

This post is also evidence of the vote manipulation today. A whole lot of whining and dramatic posts at 5k upvotes when we struggle to get past 2k most days, yet a post explaining DRS at a time it's most needed for non-DRS people isn't even at 1k votes hours later.

posted by u/Abject-Ladder2282 on 23 Jul 2022 2▲

Moving from “xyz broker” to computer share, regardless of the reputation of “xyz broker” gives you a direct relationship with the company you are investing in.

No contracts, no legal “trust me bro” only bonafide home grown American shares. Born straight from GME delivered to you, you lucky son of an ape.

posted by u/NormStan973 on 23 Jul 2022 2▲

In short, DRS could trigger MOASS

posted by u/LickLaMelosBalls on 23 Jul 2022 2▲

There aren't two groups. That's FUD

posted by u/onesugar on 23 Jul 2022 2▲

that one line about free accounts being the cash cow is key

if a service is free, you are the product

posted by u/FullMoonCrypto on 23 Jul 2022 2▲

Mic drop


posted by u/Kranacx on 23 Jul 2022 2▲

One group will be caught up for years as part of a class action suit trying to get money from some wall street broker or lobbying their government for FDIC insurance on investments while the other group has legit shares in their name and they sleep soundly from where ever they want to be on the world….

posted by u/Vexting on 23 Jul 2022 1▲

Aren't we also allowed to claim the value of our drs'ed shares whilst street name can only get back the original investment?

posted by u/gmmoore77 on 22 Jul 2022 2▲

Up with you ⬆️

posted by u/tehchives on 22 Jul 2022 2▲

Is there even a debate? I don't think so.

There are just people who understand why DRS is so important, and some people who don't.

posted by u/ChadChanningfield on 23 Jul 2022 2▲

This post does a great job of summing up our collective smoothness

posted by u/FugginGene on 22 Jul 2022 2▲

I thought they can't do that with cash accounts, only margin accounts.

posted by u/FakeAsian on 22 Jul 2022 17▲

They’re not supposed to but it sure seems like they’d rather just pay the SEC fines



posted by u/FugginGene on 22 Jul 2022 8▲

Those fines are not steep enough.

posted by u/honeybadger1984 on 23 Jul 2022 1▲

That’s by design. Slap on the wrist, no one loses their trading license, no one goes to prison. FYI FINRA and SEC are in on the scam; they just take their cut.

posted by u/Region-Formal on 22 Jul 2022 11▲

Shares held in a cash account at a broker are still street name i.e. ultimately ownership is with DTCC / Cede & Co. and not the individual. The only difference between whether it is cash or margin is that if in a cash account, can request for "your" shares not to be lent out.

However those shares are, in reality, still not in "your" name. And what's to say that, even having given such an instruction, they won't lend the shares out for shorting? You have no way of knowing and, anyway, the shares are (ultimately) not your property anyway.

posted by u/FugginGene on 22 Jul 2022 5▲

And if they actually did lend them out, wouldn't they be in big trouble? Get sued? are they really going to risk that? Are there any brokers that are actually doing that?

posted by u/Saedeas on 22 Jul 2022 8▲

Afaict the OP and these posters don't really understand the mechanics at play here. A share held at a broker is still held in the DTCC's general pool and this can be used as part of a locate for a short sale (look, there's shares right here). This doesn't mean they're lending your shares really, it's more an artifact of how continuous net settlement works. It does, however, function roughly the same (in that your shares are used as justification for a short).

This is the fascinating part about the DRS movement IMO. What happens if they can no longer issue valid locates and there are still a shitton of shares at brokers?

Who knows, we've never seen it before.

posted by u/Holiday_Guess_7892 on 22 Jul 2022 7▲

There all in one big party and we ain't in it

posted by u/Region-Formal on 22 Jul 2022 4▲

My questions are: is there any mechanisms for you to find out? Is there publicly available market data that can be used as evidence? Are there any regulatory bodies that are policing, when FINRA is a self-regulatory body made up of these brokers themselves?

The answers to all these are, if course: no. So who is able to sue them? Usung what evidence?

posted by u/akatherder on 23 Jul 2022 1▲

Honest question... Computershare says they aren't lending shares because it isn't an "authorized function of a transfer agent". Do we have any way to validate that either?

Every wrinkle brain points to DRS so I'm not even questioning CS. But is there something physically stopping them from writing an iou backed by your share? Or is it just a fine if they do?

posted by u/XMM234 on 23 Jul 2022 4▲

Basically, CS doesn't hold the shares. You do. Their function is registering the shares in your name or putting them back to Cede & Co at your request

posted by u/OoStellarnightoO on 23 Jul 2022 3▲

Sure they would be in "big trouble". Just like how brokers have been caught marking shorts as long or completely failing to deliver shares. Just a fine. A business cost. Just go to FINRA website and see how many "crimes" they have already committed and the paltry fines levied as penalties.

The thing is they would just shrug if they get caught. Because the big trouble is a fine. Sure sue them. You as a single retail against a big bank/broker with the best lawyers money can buy. Who do you think would win? Even if you win, the penalty is nothing to these big banks.

This is what most people are failing to understand. They think the law works equally for everyone. What we think as big trouble for us, normal people is nothing but a small nuisance to the rich. Getting caught is really the least of their concerns.

posted by u/ThrowRA_scentsitive on 23 Jul 2022 1▲

Shares are fungible, so its very hard to pinpoint what is even meant by lending "your" shares. Hypothetically, they could incur obligations in the relevant financial asset independently of "your" shares, whatever that means, that can ultimately affect your property interest in GME.

posted by u/XMM234 on 23 Jul 2022 1▲

$100k fine from the SEC after 4 years

posted by u/but-this-one-is-mine on 23 Jul 2022 -2▲


posted by u/UncleBenji on 23 Jul 2022 2▲

How is this even debatable? It just shows some apes didn’t read the DD. You don’t have to be here every day to go back and check what you missed. This has evolved many times in the last two years.

DRS means the shares are actually in your name. Any shares held by a broker are in the brokers name and are just assigned to your account. This is why you vote PROXY (look up definition) rather than direct. We know this as street name vs DRS being registered in your name.

posted by u/Superstonk_QV on 22 Jul 2022 1▲

Splividend Distribution Megathread


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posted by u/thundercawkbrody on 22 Jul 2022 1▲

Can someone make a step by step video how to make a cs account, the reason people I know and I havent drs is because we dont know how

posted by u/RubElectronic1559 on 23 Jul 2022 4▲

There is an automod post on every single superstonk post that's stickied to the top. It has a link to an explanation of what DRS is and it has literally how to drs form every broker in every country that will do it. It has been auto posted on every single post and stickied for 8+ months.

posted by u/Reverend_Decepticon on 23 Jul 2022 1▲


posted by u/Same-Tour9465 on 23 Jul 2022 1▲

Transfer to fudelity first then DRS from there... It's cheaper

posted by u/MrSpencer1974 on 23 Jul 2022 1▲

Well its free to have your shares in computer share too, so that point is kinda fucking moot

posted by u/WorthyofGreatness555 on 23 Jul 2022 1▲

Yep…pretty much sums it up!

posted by u/Kongdong42069 on 23 Jul 2022 1▲

Am drsd and not drsd.

posted by u/momkiewilson1 on 23 Jul 2022 1▲

Que Mr Burns

posted by u/Obsidiax on 23 Jul 2022 1▲

I have absolutely no problem with people asking questions, even basic ones, but how on earth can you be this far into this saga and not understand DRS? If you're new, fair enough, but this guy sounds like he's been here and buying for a while.

posted by u/froyomofo on 23 Jul 2022 1▲

It's been what? Almost 2 years? And people still don't know... 🤦‍♂️ Come on man

posted by u/DutchScot90 on 23 Jul 2022 1▲

The FUD and Shilling is at its highest I've ever seen since this saga started. We are close I can almost taste uranus. Eeew, did I just say that?

posted by u/PaLooseCannon on 23 Jul 2022 1▲

What in the giant fuck is this?

Since WHEN was there an anti-drs crowd?!?

Been here since Dec ‘20, never ONCE have I seen ANYTHING about “not drs’ing”.

Have to admit the wall of text is too small for my 4am eyes to read, just read title.

posted by u/steamngine on 23 Jul 2022 1▲

We need both so try to get along until we reach camp!

posted by u/ExtremePrivilege on 23 Jul 2022 1▲

I posted about this a year ago but it’s long since been buried in my comment history. Three times in 2021 TDA converted my cash account to margin. I first noticed it on one of my statements. I called them and said I had deactivated margin because I didn’t want my shares lent. They called it a glitch and apologized. The second time they did it, they said it was switched erroneously and apologized. The THIRD time it happened they tried to gaslight me and say that I must’ve requested it.

I finally transferred 90% of my shares out to Fidelity and noticed something else. Fidelity said my cost basis was $178. I bought my shares at $45 and at $78 (at the time). Why does my cost basis say $178 after I transferred? I hypothesize it’s because they never even purchased my shares. My cost basis says $178 because they had to buy them (nearly 500 shares by the way) at my time of transfer.

Your shares are 100% being lent out of your cash accounts and that’s if you even have shares. Most of you probably don’t. DRS immediately.

posted by u/okfornothing on 23 Jul 2022 1▲

Isn't it true market makers can create unlimited supply of shares to borrow!?!??

posted by u/OperationMonopoly on 23 Jul 2022 1▲

It's amazing people still don't get this. Great explanation. Should be posted every day.

posted by u/CeruleanOak on 23 Jul 2022 1▲

This isn’t quite right.

Brokers have a share of the blame in that if a share purchase fails to deliver, they still create the IOU, trusting it will settle.

At this point, the broker is done, complicit to a broken system of record keeping. It is on the DTC to settle FTDs on a cycle of T+2.

Here’s the problem, the FTD list is a mile long and the record keeping is a joke. Unless you are on the top of the pile, DTC doesn’t even call the market maker, and when they do, they use margin to effectively say “check is in the mail”, and back down the list they go.

All of the problems are with the DTC. DRS gives you ownership of the shares and takes them out of the responsibility of the incompetent DTCC, of which DTC is the clearing subsidiary.

posted by u/Morafix on 23 Jul 2022 1▲

but we all need to remember that all GME investors are individual investors with their own decisions. If one simply dont wanna DRS its the choice of that invidiual investor.

All need to do their own DD and decision making.

posted by u/InjuryIndependent287 on 23 Jul 2022 0▲

This is pure speculation that Fidelity does this with cash accounts though. It has never been proven. How do we know that DRS has not caused everything that has happened lately (no volatility, lack of volume, shorts having to cover)? I mean everything that made GME popular was before DRS and before everyone moved from RH. How do we know that we haven’t dug our own grave? We don’t. It’s all speculation. Most of my shares are in Computershare btw. I believe in owning my shares. I just think about things like this from time to time because, honestly, since the DRS movement, I haven’t seen any real DD. That was all done before. Deep thoughts by Jack Handy.

posted by u/AlienDetectives on 23 Jul 2022 0▲

You’re getting downvotes but you’re absolutely correct. DRS doesn’t prevent any of the strategies that have been and are currently used against GME, the most notable being the use of ETF creation baskets to fulfill obligations instead of buying on lit markets. Nobody wants to provide any sort of DD that doesn’t immediately support DRSing because the attitude in this sub is cult-like in their obsession with the purple circle. There’s nothing WRONG with DRSing your shares, but it’s not a catalyst of any sort of price action until (and even this is pure speculation) the stock’s entire float is registered. It wouldn’t surprise me if this whole DRS movement was blown up by bad actors to distract us from the actual DD and correcting misconceptions this sub has about market mechanics. One I still see commonly is the misconception that dark pools don’t print to the lit exchange, which was debunked by dlaur himself. I know I’m ranting but the ridiculous amount of conjecture spouted off as fact is driving me, and I’m sure others, away from this sub as a reliable source of information.

posted by u/XMM234 on 23 Jul 2022 1▲

DRS is the only way to 100% prove, that GME is naked shorted to hell.

posted by u/InjuryIndependent287 on 23 Jul 2022 0▲


posted by u/Switchdat on 22 Jul 2022 0▲

All the people doubting it or bringing up bs about DRS, you can assume they are shills

posted by u/DeepFuckingAutistic on 22 Jul 2022 0▲

if i would be asked the difference between DRS and Non-DRS.

id say DRS remove your shares from the lendable pool.

it is FUD to say you dont own your shares, that your shares are of less value, or that the broker shorts them, lends them out, gives you fake shares, will force sell your shares, wont give you the split, dividend and anything else that implies you cant hold shares to moass sums on a broker.

its just FUD.

shares are equal.

but DRS shares cant be used as locates for shorts.

that is fucking enough.

as a bonus we get shares counted, its awesome.


posted by u/reddit_is_meh on 23 Jul 2022 5▲

Remove shares from lendable pool is definitely a better way to put it. Whether they directly lend your shares or not, they are still in the pool of 'is there liquidity? yeah? You can short it' as far as market makers go.

posted by u/DeepFuckingAutistic on 23 Jul 2022 1▲

marketmakers can short even if 100% DRS.

but yeah, tons of good reasons, but using undocumented speculation of crime is the worst.

posted by u/Vexting on 23 Jul 2022 1▲

Correct me if I'm wrong, but the original dds on this point out that should your shares be lost due to fuckery/broker going under/black Swan event then you would want to claim back right?

A) Drs'ed shares are yours - you can claim the value of those shares.

B) Street name ious - you can claim the original investment upto a certain value.

posted by u/nolagfx16 on 22 Jul 2022 0▲

It's. All. FUD.

posted by u/newbiewar on 23 Jul 2022 0▲

To be fair i think the splivident has exposed brokers who don’t even own the shares themselves… instead have some kinda contract for the purported shares

posted by u/freeleper on 23 Jul 2022 0▲

But my question is about DRSing 100% versus DRSing most of your shares

posted by u/SkydiveandyS on 22 Jul 2022 -2▲

I am a firm believer in the short thesis. But if the short thesis shows (let’s say) 5x the float shorted, then we have less than 20% of shorted shares DRSed. 1 in 5 has DRSed and its not really doing anything yet.

posted by u/XMM234 on 23 Jul 2022 2▲

The thing is, after we reach 100% DRS, DTC will have no real shares to clear the trades with. All that remains is proven to be synthetics at this point. I bet the MOASS will kick off the same way the Voksvagen squeeze did. As soon as apes get closer to registering the entire float, (not the 'technical float', but the official float of 253.5 millions of shares) many smallers short entities will rush to the almost nonexistent exit.

posted by u/SkydiveandyS on 23 Jul 2022 1▲

I agree. When I say it’s not doing anything yet, I feel that SHf have too much wiggle room to manipulate while we only have 50% locked. It’s really fascinating to watch, and the inevitable collapse of our fraudulent securities markets will most likely dwarf what we are seeing now by comparison. I knew heard about it pre January but I got in late on GME, around May ‘21. When did people really begin to start DRSing? I went 50% around December ‘21 and 90% last month

posted by u/XMM234 on 23 Jul 2022 2▲

Summer last year. That's when the DRS talk started to gain traction

posted by u/SkydiveandyS on 23 Jul 2022 1▲

That’s not too bad, 50% in a year. I wonder if apes can maintain that rate.

posted by u/XMM234 on 23 Jul 2022 1▲

It's not 50% tho. It's 50% of the 'technical float', after the institutions taken away. Imho, the institutions might paperhand eventually

posted by u/mrdavidrt on 23 Jul 2022 -2▲

Why doesn't gamestop stop doing share offerings into the freakin market? How about that?

posted by u/Same-Tour9465 on 23 Jul 2022 1▲

Good idea, probably why they haven't in over a year!

posted by u/NotSoAngryAnymore on 22 Jul 2022 -5▲

Fidelity doesn't loan shares unless you've a margin account with a margin debt. That's why we went there when RH turned off the buy button you smooth brained noobs. You chased off anyone with wrinkles with all your bullshit.

Splividend has been the worst thing that's ever happened to the community. You noobs killed the ideology I invested in, now backtracking. RC can't save you from this magnitude stupidity.

posted by u/XMM234 on 23 Jul 2022 1▲

Didn't they actually get fined for that exact reason? "We don't loan your fully paid shares because else, the SEC would come down on us furiously and fine us $100k for every 10 millions shares lended out"

posted by u/loimprevisto on 23 Jul 2022 0▲

Does Fidelity use the NSCC 'Fully Paid For Account' to deliver customer shares for institutional settlement ahead of receiving them? That's not "loaning shares" and is fully compliant with Section 15c3-3 requirements... but still allows short sellers to get their locate.

Does Fidelity allow unsettled cash account memo-segregated positions that have anticipated CNS delivery to be used for one–day lends to short sellers?

Does Fidelity force buyins on FTRs or do they collect interest payments and let short sellers kick the can down the road?

I've asked these questions to Fidelity customer service and have never received a direct answer. The whole point of several different DD articles has been that the entire system is structured to allow (and incentivize) brokers to make money from providing shares to short sellers.

posted by u/NotSoAngryAnymore on 23 Jul 2022 0▲

Yeah, so did we., Long time ago. Then again.

posted by u/ahungrylilsandwhich on 22 Jul 2022 -6▲

So much misinformation is coming out of this person.

posted by u/PlasmaTune on 22 Jul 2022 -7▲

So I keep seeing "OMG YOU NEED TO DRS 100% OF YOUR SHARES" how would we force them to close all their positions if we didn't each have a few in brokers to inflict max pain at $100,000,000+?

And before I'm down voted to oblivion, I'm 80%+ DRS'd and just genuinely curious

posted by u/Region-Formal on 22 Jul 2022 12▲

The act of DRSing is actually the act of forcing them to close their short positions.

posted by u/winebutch on 22 Jul 2022 2▲

We think that is what will happen, but as it has never happened before, we don't actually know what tricks might be up the sleeve of DTCC, hedgies, etc. I have always assumed that there will be continued fuckery and rule bending until RC pulls GME from the exchange and goes blockchain...that should actually cause some shit to go down.

posted by u/SatoshiNakaMichael on 22 Jul 2022 1▲

Doesnt seem like theyve been closing anything. Wheres your proof?

posted by u/tehchives on 22 Jul 2022 4▲

Maybe you don't realize, but market makers have access to infinite liquidity from a single located share.

As long as there is still a single share left with DTCC, the game goes on - which means a full float needs to be direct registered to show on paper there shouldn't be any shares left there.

The short thesis leads us to expect that there would still be many more shares with the DTCC even after a full float is direct registered. To my thinking, that's when the show really starts.

posted by u/Region-Formal on 22 Jul 2022 3▲

Precisely this.

posted by u/PlasmaTune on 22 Jul 2022 1▲

I fully understand that which is why I continuously DRS, but when the time comes and there is XXX,XXX,XXX number of synthetic positions and hedge funds are forced to close their position why would I want to give them my legitimate shares when they need to close everything beforehand? Sell them back the broker synthetics for $XXX,XXX,XXX and keep my ComputerShare shares to continue to support RC and GameStop for the rest of my life.

posted by u/Region-Formal on 22 Jul 2022 3▲

I think you've answered your own question here. By not selling back, they will need to offer higher and higher prices to entice you to sell. That is how the price can go up to an astronomical figuree.

posted by u/hatgineer on 22 Jul 2022 2▲

Why is max pain required?

posted by u/PlasmaTune on 22 Jul 2022 0▲

The entire reason were here to begin with, MOASS.

posted by u/hatgineer on 22 Jul 2022 2▲

I am here for the fundamentals. Can you explain the mechanism relating max pain to MOASS.

posted by u/winebutch on 22 Jul 2022 2▲

it's not max pain on the options chain, just maximum pain in how much they have to pay out during MOASS.

posted by u/hatgineer on 22 Jul 2022 1▲

In that case, why does he say shares in brokers are required for it?

posted by u/Same-Tour9465 on 23 Jul 2022 1▲

There will always be some rando who bought some gme in fudelity or 4 years ago and forgot about it .. We don't need to worry about keeping shares in brokers.

Kind of a goofy thing to suggest tbh lol. Idk why I've seen a big push today advocating for needing to keep shares in brokers for MOASS. It's irrelevant and kind of dumb. No one needs to worry about that, they can just DRS.

posted by u/Trap-X-Zero on 22 Jul 2022 1▲

Locking up the float is the proof that Gamestop needs to legally so something about it so lawyers can't try to pull the market manipulation card and sue. Whatever the case.. Ryan wouldn't mention DRS if it won't help his investors.

posted by u/karasuuchiha on 22 Jul 2022 1▲

“I keep one in the chamber in case your pondering”

posted by u/SatoshiNakaMichael on 22 Jul 2022 -8▲

Why has the price steadily declined since we started drs'ing? Why cant anyone show how it is actually helping? We have not sustained any upswing more than a quarterly roll. What evidence do we have that drs does fucking anything at all for our position? The way it seems is it does nothing and price is still down 30%+ year over year. Wow were geniuses and really crushing them.

posted by u/Trap-X-Zero on 22 Jul 2022 6▲

There's ways to short it. If that's the case, ask why Popcorn is dropping if they so call own 90% of the float.