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PurpleGrowth.org
Computershare & Direct Registration System (DRS) Information
The Background
In the summer of 2021, a wave of retail investors, galvanized by the GameStop phenomenon, delved into a trove of literature detailing the intricacies of Wall Street's practices. One standout was Dr. Susanne Trimbath's book, Naked, Short and Greedy: Wall Street's Failure to Deliver. This eye-opening read, featured in the r/Superstonk DD Library and accessible to anyone, exposed a startling truth: the stocks and shares held by brokers in the U.S. are not actually registered in the investor's name. Instead, they are held in "street name," with an entity called Cede & Co. listed as the official owner.
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This revelation struck a chord with the GameStop investor community, who realized that this arrangement stripped them of their rightful property and voting rights. Determined to reclaim their stake, these investors turned to the Direct Registration System (DRS). By directly registering their shares, they ensured no institution could impose trading restrictions or infringe on their shareholder rights.
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The benefits of DRS extend beyond mere ownership. It guarantees protection by the SEC, thwarts dark pool abuse, and prevents the lending of shares without consent. For the GameStop community, DRS became a powerful tool in their fight against the systemic issues plaguing Wall Street, marking a significant step towards true shareholder empowerment.
Dr. Susanne Trimbath
Why Computershare?
Computershare lets you hold your GameStop shares directly in your name, unlike typical broker portfolios where you're just a beneficiary and the DTCC owns all rights to the shares. This distinction is crucial because it gives you full ownership of your shares. Given GameStop's extreme volatility, having full ownership means your broker can't legally close your position, ensuring you remain part of the "infinity pool."
What is Direct Registration System? (DRS)
The Direct Registration System (DRS) lets you hold your securities electronically, eliminating the need for physical certificates. With DRS, you receive a unique security reference number (SRN), enabling companies to track ownership and the supply of floating shares on the market. This system streamlines your investment experience and enhances transparency.
This video by DRSGME.ORG will give you a quick introduction.
Why is this important?
This is crucial because GameStop is listed on the New York Stock Exchange (NYSE), which is notorious for being one of the most manipulated and least transparent markets globally. The lack of transparency has enabled organized criminals in the financial industry to devise effective and legal schemes, actively and efficiently driving down the prices of publicly traded companies, often pushing them toward bankruptcy, all while profiting tax-free. (more information through here)
Is it difficult to DRS shares?
No, it's surprisingly straightforward! Here, you can find an easy, step-by-step guide on how to DRS. Start your journey towards transparency today! DRSGME.ORG has the best guide available.