I haven't posted here in a long time, but I just realized I'm a Top 100 all-time poster here and want to get this message out as far and wide as I can. This is the way.
This is a continuation of my series of Computershare DD's. Part 1 and 2 are important! You don't start out watching Revenge of the Sith first.
Part 1
Part 2
Smooth Brain FAQ
Today's topic is all about that DRIP. 💎💅
DRIP- Dividend Reinvestment Plan and "Plan Holdings" shares
When you buy shares through Computershare, you are automatically enrolling in their DirectStock purchase plan, or "Plan Holdings", which includes automatic Dividend reinvestment.
Computershare administers dividend reinvestment and direct stock purchase plans, or DSPPs for short. Through a DSPP, in addition to reinvesting dividends, you may also purchase shares, directly from the companies themselves, without the high fees that many brokerage firms charge. With lower fees it is easier to start investing even with small amounts of money. Many DSPPs administered by Computershare require initial payments of only $25 or $50, even if the stock price of the company is higher. This is possible because DSPPs enable ownership of partial shares. For example, if a company's current stock price is $100 and you make a $25 purchase, you will become an owner of 0.25 shares. These partial shares have value equal to their fraction of a whole share; for example, a 0.25 share would be sold for 1/4 the value of a whole share and would earn a 1/4 dividend.
This is different than a book entry- which is what I personally want for my infinity pool. ♾⛲
Here are the 3 different account types I'm talking about with computershare:
I want to be clear that there is a lot of misinfo coming directly from ill-informed Computershare reps. And quite frankly, no disrespect, I don't think they were ready for the influx of customers that has resulted from the $GME community (and our highly detailed questions regarding the mechanics of their business model.) Many of us are getting conflicting answers to the same questions, or no answers at all.
To be safe, I personally don't want to be enrolled in this reinvestment program- I want the dividends delivered to me without any hassle. In order to terminate your enrollment in the Dividend Reinvestment Program, the system will automatically sell your fractional shares if you don't get proactive about it (it will prompt you whether you want to keep your whole shares, which ofc you want to keep all of them). Fractional shares can NOT be held in book or certificate form, only in DRIP!!
However...
🚨I have been told that you can request over the phone to only convert your whole shares to book entry, and the fractionals can be kept in a DRIP account to avoid selling them! Don't feed the hedgies!🚨
Here's what u/GMEJesus had to say about it (shout out to them, they've been around for a long time!) check them out for more info!
Speculation disclaimer: Users are reporting that although there are rumors, you cannot cancel the sale transaction of the fractional sale once it's begun. I have no confirmation that you can, but I've seen the reports. I wouldn't play with fire, so it's always safest to call Computershare directly if you have questions about this process. 1800-522-6645 is the GME Investor Relations line.
Should you choose to terminate your enrollment in DRIP altogether, this post by u/Roaring-Music is an excellent resource for how to do so!
FYI: Computershare is already equipped to handle a crypto dividend
Computershare is also the transfer agent for Overstock, who also has history with a crypto dividend.
From Overstock's website:
Q: Do I need to have a digital wallet or must I be familiar with blockchain technology in order to receive the Dividend?
A: No. The Series A-1 Shares are not a virtual currency or another form of anonymous bearer digital instrument. The Series A-1 Shares are conventional uncertificated securities for which a "courtesy carbon copy" of certain transfer agent records are maintained on the blockchain. The courtesy carbon copy does not play any corporate or regulatory role. Rather, the traditional books and records kept by Computershare, an SEC-regulated transfer agent govern the record ownership of Series A-1 Shares. Moreover, distributed ledger technology does not play a role in the sale, issuance, transfer or custody of the Series A-1.
RECEIPT INFORMATION
Q: How do I receive the Dividend?
A: Investors are not required to take any action in order to receive the Dividend. On the Payment Date, investors should see their Series A-1 Shares reflected in their brokerage or other custodial accounts in which they hold their Overstock securities.
Q: What happens if I do nothing?
A: Investors are not required to take any action in order to receive their Series A-1 Shares As mentioned above, on the Payment Date, investors should see their Series A-1 Shares reflected in their brokerage or other custodial accounts in which they hold their Overstock securities.
This doesn't mean much in relation directly to GME and it doesn't prove anything except that Computershare has had the infrastructure in place to handle crypto dividends in the past.
So ultimately, do you have to convert from plan to book to fuk the hedgies?
I can't find definitive proof for either argument for, or against- although I admittedly in the past have been advocating that shares must be "book" to be removed from the DTC based on my conversations with CS reps.
So, to be safe, I personally converted to book (and also ordered a certificate before they stopped doing that.) There is a lot of discussion that any shares with computershare are DRS and not with the DTC but I can't find definitive proof either way and I am trying very hard to avoid spreading misinfo.. and still trying to get to the bottom of it.
Here's a chat from u/lovely-day-outside that says there apparently IS a difference and plan shares are NOT DRS
🚀 I know for a fact my book shares are removed from the DTC. 🚀
How do I know that? This is from my statement of my transfer from TDA to Computershare "book" entry shares:
Many apes like u/GMEJesus, u/MommaP123, and several others have been on the DRS pursuit and mapping the Directstock Purchase Plan transaction to find out definitively whether "Plan" shares are also removed fully from the DTC (and where they originate). When you google "who is computershare's broker agent?" a few interesting things pop up:
- Computershare has a Securities company, though it doesn't appear to have an active broker license at this time according to broker check.
- this link which outlines their broker selection policy (which interestingly links to the Channel Islands version of the website) I found no definitive answers, but admittedly I didn't dig very deep.
Given the fact that there seems to be a purchase process with plan holdings thru a broker, it would make sense those shares are also procured in your name, not Computershare's. They are just the transfer agent, after all. So there is speculation that only book shares are DRS...But that hasn't been proven with resources yet enough for any of us to put it to rest yet. 🤷♀️ And that's probably why CS reps are giving so many different answers (among other reasons). Please take everything Computershare reps tell you with a grain of salt.
But one thing is for sure- No matter what, Hedgies r fuk when you use Computershare and DRS.
So I feel best knowing I converted all my whole shares to book entry, and there's an option to retain the fractional shares in the DRIP program to prevent having to sell anything. 💎🙌
You're going to continue to see FUD attacks across the GME subs surrounding the topic. Shield wall and stand tall!!
Important Reminder- Computershare is not a broker (And I am personally keeping my MOASS shares in my brokers to eventually find the sell button)
For reference, I personally am keeping all of my "play" shares in my various broker accounts to sell (whatever that means.) Multiple reasons for doing that but mainly, the interface is the most familiar to me and I will appreciate being able to navigate somewhat on auto-pilot when I'm sweating absolute cantaloupe balls during MOASS volatility and prices in the milli$.
There's also a $1 Million transaction limit on online limit orders with Computershare, although you can do multiple transactions per day, and you can do a theoretically limitless market order if written and mailed in, which will be executed at least once daily in a batch order.
Here's the CS Direct Stock Handbook that outlines the different order types you can do through them, which are Limit order (day), Limit order (30 day GTC), or a written Market order. (I confirmed with CS reps that the direct stock handbook applies to all electronically held shares- even those not enrolled in dividend reinvestment.)
International Apes- Yes you can do it too!
Here are the countries listed as being served on the Computershare website
Note- reports are saying the Canadian Depository of Securities (The Canadian DTC) has put a hold on Direct registration of GME due to overwhelming requests. I'm sorry, Canadi'Eh'pes. IBKR may be a valid workaround.
There is a valid workaround using the “Give a Share” program, although it’s pretty expensive at $375, it's a valid option!
The IBKR Workaround
With a disclaimer that IBKR sucks and so does Leon Cooperman
Apparently there's a workaround for international apes using IBKR shoutout to u/n01u! This seems to be the most legit way for anyone in any of the countries listed above to actually succeed in direct registering their shares. You can either transfer your shares to them, and then transfer them to Computershare, or buy directly thru IBKR and then transfer those to CS. Both methods have been done successfully by apes from several of the countries listed.
.. But BEWARE OF IBKR!! I'm still salty about them removing the buy button back in January and an ape never forgets so just proceed with caution on that one. 🤷♀️ I certainly don't endorse anyone using IBKR as their regular broker- they're the rich man's Robinhood. But this is legit as far as I can tell for apes around the world to be able to participate in direct registration!
And according to u/n01u, any of the 200 countries that IBKR services can Direct register their shares! According to them, an ape successfully did this from Russia! GAME CHANGER!
Retail Owns the Float
It's possible that direct registration is causing the Yahoo Finance float situation. Here's a current screenshot from today, Sep 13.
If you haven't yet, you NEED to read this DD by u/thabat.
Relevant highlight from the post:
Where does Yahoo get this data?
https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en_US
Financial statements, valuation ratios, market cap and shares outstanding data provided by Morningstar.
Okay so Yahoo gets this specific data from Morningstar.
Who does Morningstar get it's data from?
https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178_28k.htm
---------------------------------------------------
We collect most of our data from original source documents that are publicly available, such as regulatory filings and fund company documents. This is the main source of operations data for securities in our open-end, closed-end, exchange-traded fund, and variable annuity databases, as well as for financial statement data in our equity database. This information is available at no cost.
For performance-related information (including total returns, net asset values, dividends, and capital gains), we receive daily electronic updates from individual fund companies, transfer agents, and custodians. We don’t need to pay any fees to obtain this performance data. In some markets we supplement this information with a standard market feed such as Nasdaq for daily net asset values, which we use for quality assurance and filling in any gaps in fund-specific performance data. We also receive most of the details on underlying portfolio holdings for mutual funds, closed-end funds, exchange-traded funds, and variable annuities electronically from fund companies, custodians, and transfer agents*.*
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So that answers the question as to why the float changed from 126M to 248M in the same day.
This is not a glitch.
One way or the other, the data got pushed "from individual fund companies, transfer agents, and custodians" to Morningstar, to Yahoo. Intraday.
Transfer agents provide that number, in addition to custodians (brokers). Who is gamestop's transfer agent again? Oh yeah... COMPUTERSHARE!
How to transfer shares to Computershare
- Don't forget to check out my previous posts in this series for more detail on my process. Here's Part 1 and here's Part 2, as well as the Smooth Brain Sunday Special computershare edition!
- u/MommaP123, u/Big-Bedroom8783, u/TheWheyThisIs, and many others have written extremely helpful guides on this topic and recorded their journey!
- u/da_squirrel_monkey wrote this fantastic step-by-step guide from transferring your shares from most major brokers. Some of them, however, can be done with just a phone call or chat! Update: they also just posted an international guide!
- 1-800-544-6666 is Fidelity's number to DRS with Computer Share. Big thanks to u/overlypositive for sharing that direct line! It took them a matter of minutes to get it done!
- TD Ameritrade customers can open a Chat with Ted and do it through there, or call them 800-652-4584. I did my process through TDA but filled out a form and scanned it in. Apparently it gets easier than that!
Running list of DRS Participating Brokers
HUGE shoutout to u/Bibic-Jr for putting this together in the comments of the last post, based on valuable info collected by u/da_squirrel_monkey! Teamwork makes the meme work!
POSSIBLE
E*Trade (🇺🇲)
Fidelity (🇺🇲)
FirsTrade (🇺🇲)
M1 Finance (🇺🇲)
TD Ameritrade (🇺🇲)
Webull (🇺🇲)
Interactive Brokers/IBKR (🌎 = International)
Commsec (🇦🇺)
Saxo trader (🇦🇺 could be 🌎)
Scotia iTrade (🇨🇦) was able to do it for $500 per transfer, but in the same boat as Wealthsimple I assume?
WealthSimple (🇨🇦) was able to for free, but now no Canadian broker can transfer because CDS (Canadian Depository for Securities, the Canadian DTC) halted all GME DRS transfers on 9/10/21. 👀👀
────────
MAYBE?
DeGiro - They're in touch with ComputerShare about how they can arrange these transfers but don't have a solution yet. (🇪🇺)
Ally Invest - Seems possible for a $115 fee. (🇺🇸)
────────
NOT POSSIBLE
BMO Investorline - NOT POSSIBLE (because CDS 🇨🇦)
DeGiro - NOT POSSIBLE (🇪🇺)
Etoro - NOT POSSIBLE (🌏)
Flatex - NOT POSSIBLE (🇩🇪)
Freetrade - NOT POSSIBLE (🇬🇧)
Hargreaves Lansdowne - NOT POSSIBLE (🇬🇧)
Interactive Investor - NOT POSSIBLE (🇪🇺🌏)
T212 - NOT POSSIBLE (🇪🇺)
Remember if your broker is on the "not possible" list, you may still be able to use one of the workarounds!
Remember- As of Sep 9, Paper certificates are not available at this time per Gamestop
I'm so sorry to those whose hopes were raised when they saw that I got a paper certificate! I don't know why they've stopped- I've heard that it was actually a paper supply issue, as in they are actually out of the pre-printed certificates, and that they're also switching to a Quick Cert system- both of those pieces of info coming from a CS rep, but they have been historically ill-informed about anything above level-1 support (like when they told me today's shares sell for tomorrow's price...🤦♀️ NOT TRUE) so take this with a grain of salt. They are sending me a company prospectus so I can dig a little further. It's exciting to note though, any of the countries computershare serves are available to request a paper certificate when they are available!
📣Paper certificates are NOT the only reason to direct register!📣
BUY. HODL. SHOP. DIRECT REGISTER. BE THE CATALYST.
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