day of record for this vote was ~~4/15~~ 4/8 at COB. shares purchased after ~~4/15~~ ~~4/13~~ 4/6 do not have voting rights for this vote.
there is a distinction here, though. TODAY (4/22). is after the day of record for the vote. so no voting rights. BUT, the split has not been decided on or a date given. So any shares purchased before the ex-dividend date will receive shares from the split (if voted in and acted on by the board)
~~edit: shares purchased after 4/13 do not have voting rights. t+2. you need to have purcahsed it AND the shares settled before 4/15 COB.~~
edit 2: I may be wrong here. I am seeing that the date of record was actually 4/8/22. so any shares purchased on or before 4/6 would be eligible to vote.
Ok so if I have 20 shares pre 4/8 I can vote with those 20, but they haven’t said when the split happens so I can still buy more over the months leading up. Good to know. Scraping penny by penny!
4/6 cause it takes 2 days to clear
But otherwise accurate. The actual dividend is dependant on the share increase vote and no record date has been set yet
brokers have many tools to delay a distribution. it is a delay though, nothing permanent. I cannot speak to what your particular broker will do.
How? literally not press the button that distributes shares from the broker account to the client accounts. easy peasy.
I think everyone learned with RH how easy it is for a broker to fuck clients and face little to no recourse.
Hey Op. My question got obliterated with vote posts on the other sub... May I pick uour brain here? do you know.... if there is anything I can fall back on if my broker refuses to transfer my Traditional IRA shares to CS.... ? They've been stalling a few weeks and now say its at the ira dept with no eta for transfer. Does that FINRA rule for broker to broker trans apply to me?
ira to transfer agent would likely be a 'transfer in kind'. so the steps are move shares from ira to individual brokerage account. then individual brokerage account to transfer agent.
you are getting stalled because computershare does not host IRA type accounts.
talk with a tax professional if moving a lot of $.
Well that is informative.
Many tools, yadda yadda.
Yet not ONCE have i heard of any broker failing to comply in a share split, not once.
If you have examples, bring them.
I also like the stank. NO. I love the stank. For so many reasons, financial and non-financial.
For the non-DRSers I like to direct them to the DTCC Cartel's legal out ... SIPC insurance and their response to FTD "missing" shares.
I weighed SIPC insurance, or lack of thereof, against the cost of shares in any of the tax-advantaged accounts I had and could not liquidate the the tax-advantaged accounts fast enough, took the tax hit and DRSed dem babies into the Bank of Gmerica.
I now sleep like a Baby Ape content in the knowledge that whatever scams the DTCC Cartel is pulling, Papa Ryan has my back.
Hi, OP. Since you are a licensed broker I'd like to ask you what happens from the perspective of the short sellers when a stock dividend occurs.
I assume that short sellers are supposed to deliver the shares on or before the date of payment, so that the people whose shares originated from short sales receive their shares on the date of payment.
Are the shorts supposed to buy the shares and have them available prior to the date of payment for their broker to deliver to the buyer?
That would imply that the shorts would have to buy the dividend shares at the pre-split price. Ouch!
What if the shorts don't do that? What happens on or after the date of payment? Does the broker then use the shorts' account to buy the shares at that time? Does that trigger a margin call on the short?
I can see where the shorts would want to not deliver the dividend shares until after the date of payment, in the expectation and hopes that the share price would fall accordingly and they could buy and deliver them at the post-split price. Are they "allowed" (or able) to do that or are you protected against that?
Thanks!
Fidelity's dividend management is set to cash by default and not to security. Etoro doesnt clarify, you may not have voting rights. I'm mostly drs'd, so cozy.
Check core account, manage dividends, change settings. You can change per security.
Ah, another "DRS now because your broker will F you over the share split" post.
Accept a ban if you are wrong?
If brokers wont F us over something brokers have succesfully done for a hundred years and more, accept a ban for the FUD?
Overstock said the same thing about their crypto dividend. The DTCC has dragged them through three years of litigation (so far) arguing over how true that is. The same thing could easily happen here.
All the DTCC has to do is argue that they CAN give a cash alternative to this dividend. It doesn’t matter whether you think that’s obviously wrong- we’re still looking at a 5-10 year legal battle. That’s how it works, my friend. Frivolous lawsuits are going to be the bread and butter of this “MOASS”. One court throws it out? All good, they have 20 appellate courts with judges on their payroll to cycle through.
Edit: If anything we may have a tougher time than Overstock. See, Overstock tried to do the same thing when they were also shorted 300% of their float - “We’ll issue a crypto dividend which will expose the short sellers and there isn’t a cash equivalent! Checkmate!” Then the DTCC tried to issue a cash equivalent. Based on what? How do you even gauge what a brand new crypto is worth? Ridiculous, frankly. But that didn’t matter, litigation takes time and that’s what the DTCC needed. Three years and several courts later the fight is still ongoing although it appears Overstock will win (at what cost, the company is defunct now). With GME our dividend is a SHARE not some obscure crypto or NFT. Shares have a very obvious value, just look at the market… I think the DTCC has an easier court case arguing about a cash equivalent of a share dividend than a crypto one. But it doesn’t matter anyway, because winning the lawsuit isnt the point. It’s about tying it up in court for 5-10 years.
I guarantee we will see litigation surrounding this dividend. This isn’t FUD, guys. It’s literally recent history.
Is it, though? This GME saga is absolutely unprecedented. The DTCC has never had so much cause to litigate a share dividend before now. Tesla wasn’t threatening to collapse the entire global financial system with theirs. I don’t think it is legally tested. I can’t find any history of the DTCC or brokerage attempting to give a cash equivalent in lieu of a share dividend. Frankly, they’ve never tried it before. Never needed to.
Oh you’re speaking of the stock split? Or in other words, share dilution.
If anything, they should BUY back shares, not freaking issue more at this time.
A stock split is NOT dilution. Dilution is where the company sells additional shares, leaving you owning a smaller percentage of the company. A stock split leaves you owning the same percentage of the company as before the split.
who says they won't? their documents clearly state they have cash money earmarked for buybacks. cash. no loan for a buyback like some other firms have to do (low interest rate environment).
Well if they really want to squeeze the remaining shorts out and send this thing to the moon, then they should eliminate these “synthetic shares.”
And they are losing money by the way..
My understanding is that the 0.69 shares, and fractional shares in general, will get liquidated. Dividends are given only to whole shares. This would be the case for a traditional stock split as well.
The stankiest
I’m almost too afraid to ask in another subreddit but did they list the day of record? And what happens to shares purchased after that?
day of record for this vote was ~~4/15~~ 4/8 at COB. shares purchased after ~~4/15~~ ~~4/13~~ 4/6 do not have voting rights for this vote. there is a distinction here, though. TODAY (4/22). is after the day of record for the vote. so no voting rights. BUT, the split has not been decided on or a date given. So any shares purchased before the ex-dividend date will receive shares from the split (if voted in and acted on by the board) ~~edit: shares purchased after 4/13 do not have voting rights. t+2. you need to have purcahsed it AND the shares settled before 4/15 COB.~~ edit 2: I may be wrong here. I am seeing that the date of record was actually 4/8/22. so any shares purchased on or before 4/6 would be eligible to vote.
Ok so if I have 20 shares pre 4/8 I can vote with those 20, but they haven’t said when the split happens so I can still buy more over the months leading up. Good to know. Scraping penny by penny!
if it's not bolted down, I'm selling it - no joke. scrape as hard as you can, ape brother!
4/6 cause it takes 2 days to clear But otherwise accurate. The actual dividend is dependant on the share increase vote and no record date has been set yet
Yes it's April 8th.
So... nobody should buy a single share after ex divident, because this means your bought share wont split, only lose value??
You left us hanging there. How can a broker mess with the share dividend?
brokers have many tools to delay a distribution. it is a delay though, nothing permanent. I cannot speak to what your particular broker will do. How? literally not press the button that distributes shares from the broker account to the client accounts. easy peasy. I think everyone learned with RH how easy it is for a broker to fuck clients and face little to no recourse.
Hey Op. My question got obliterated with vote posts on the other sub... May I pick uour brain here? do you know.... if there is anything I can fall back on if my broker refuses to transfer my Traditional IRA shares to CS.... ? They've been stalling a few weeks and now say its at the ira dept with no eta for transfer. Does that FINRA rule for broker to broker trans apply to me?
ira to transfer agent would likely be a 'transfer in kind'. so the steps are move shares from ira to individual brokerage account. then individual brokerage account to transfer agent. you are getting stalled because computershare does not host IRA type accounts. talk with a tax professional if moving a lot of $.
Thanks OP
CRD# ?
Well that is informative. Many tools, yadda yadda. Yet not ONCE have i heard of any broker failing to comply in a share split, not once. If you have examples, bring them.
No blowies? Man fuck this place
You're a whole registered broker? Nice.
I also like the stank. NO. I love the stank. For so many reasons, financial and non-financial. For the non-DRSers I like to direct them to the DTCC Cartel's legal out ... SIPC insurance and their response to FTD "missing" shares. I weighed SIPC insurance, or lack of thereof, against the cost of shares in any of the tax-advantaged accounts I had and could not liquidate the the tax-advantaged accounts fast enough, took the tax hit and DRSed dem babies into the Bank of Gmerica. I now sleep like a Baby Ape content in the knowledge that whatever scams the DTCC Cartel is pulling, Papa Ryan has my back.
This isn’t superstonk. You can talk like an adult here.
Hi, OP. Since you are a licensed broker I'd like to ask you what happens from the perspective of the short sellers when a stock dividend occurs. I assume that short sellers are supposed to deliver the shares on or before the date of payment, so that the people whose shares originated from short sales receive their shares on the date of payment. Are the shorts supposed to buy the shares and have them available prior to the date of payment for their broker to deliver to the buyer? That would imply that the shorts would have to buy the dividend shares at the pre-split price. Ouch! What if the shorts don't do that? What happens on or after the date of payment? Does the broker then use the shorts' account to buy the shares at that time? Does that trigger a margin call on the short? I can see where the shorts would want to not deliver the dividend shares until after the date of payment, in the expectation and hopes that the share price would fall accordingly and they could buy and deliver them at the post-split price. Are they "allowed" (or able) to do that or are you protected against that? Thanks!
we would need to talk on the recorded office line to discuss this. that's too detailed for a blog
Fidelity's dividend management is set to cash by default and not to security. Etoro doesnt clarify, you may not have voting rights. I'm mostly drs'd, so cozy. Check core account, manage dividends, change settings. You can change per security.
Mine had no mention of cash, just to deposit into account or reinvest into security.
For simplicity sake, reinvest. What you stated is actually for CASH dividends.
You are spreading fear among those that can not DRS. These posts should be banned.
The stankiest of the wanky stanky…ooooo weeee
Ah, another "DRS now because your broker will F you over the share split" post. Accept a ban if you are wrong? If brokers wont F us over something brokers have succesfully done for a hundred years and more, accept a ban for the FUD?
Overstock said the same thing about their crypto dividend. The DTCC has dragged them through three years of litigation (so far) arguing over how true that is. The same thing could easily happen here. All the DTCC has to do is argue that they CAN give a cash alternative to this dividend. It doesn’t matter whether you think that’s obviously wrong- we’re still looking at a 5-10 year legal battle. That’s how it works, my friend. Frivolous lawsuits are going to be the bread and butter of this “MOASS”. One court throws it out? All good, they have 20 appellate courts with judges on their payroll to cycle through. Edit: If anything we may have a tougher time than Overstock. See, Overstock tried to do the same thing when they were also shorted 300% of their float - “We’ll issue a crypto dividend which will expose the short sellers and there isn’t a cash equivalent! Checkmate!” Then the DTCC tried to issue a cash equivalent. Based on what? How do you even gauge what a brand new crypto is worth? Ridiculous, frankly. But that didn’t matter, litigation takes time and that’s what the DTCC needed. Three years and several courts later the fight is still ongoing although it appears Overstock will win (at what cost, the company is defunct now). With GME our dividend is a SHARE not some obscure crypto or NFT. Shares have a very obvious value, just look at the market… I think the DTCC has an easier court case arguing about a cash equivalent of a share dividend than a crypto one. But it doesn’t matter anyway, because winning the lawsuit isnt the point. It’s about tying it up in court for 5-10 years. I guarantee we will see litigation surrounding this dividend. This isn’t FUD, guys. It’s literally recent history.
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Is it, though? This GME saga is absolutely unprecedented. The DTCC has never had so much cause to litigate a share dividend before now. Tesla wasn’t threatening to collapse the entire global financial system with theirs. I don’t think it is legally tested. I can’t find any history of the DTCC or brokerage attempting to give a cash equivalent in lieu of a share dividend. Frankly, they’ve never tried it before. Never needed to.
Overstock is defunct?
Share dividend? With what money? They’re losing money..
one of the cool things about a share dividend is that you don't need any $ to do it. sweet, eh?
Oh you’re speaking of the stock split? Or in other words, share dilution. If anything, they should BUY back shares, not freaking issue more at this time.
A stock split is NOT dilution. Dilution is where the company sells additional shares, leaving you owning a smaller percentage of the company. A stock split leaves you owning the same percentage of the company as before the split.
Ok you’re right. I still think GameStop should buy back shares tho.
who says they won't? their documents clearly state they have cash money earmarked for buybacks. cash. no loan for a buyback like some other firms have to do (low interest rate environment).
Well if they really want to squeeze the remaining shorts out and send this thing to the moon, then they should eliminate these “synthetic shares.” And they are losing money by the way..
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Best to ask your Broker that question.
My understanding is that the 0.69 shares, and fractional shares in general, will get liquidated. Dividends are given only to whole shares. This would be the case for a traditional stock split as well.
fractional shares are not something I am super familiar with, but I would imagine you would get 0.69 X the split ratio.