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The original was posted on /r/Superstonk by /u/Saftiig on 2023-07-20 15:14:31.

Hello everyone,

this post is about the importance of booking your brokerage and Direct Registration System (DRS) shares and a crucial advantage - the ability to remove shares from the Depository Trust & Clearing Corporation (DTCC). I compiled and formulated the information with the help of an AI-tool (english is not my native language). The information in this post will be held as universal as possible, however I will include links at the bottom on how to DRS and BOOK specifically for GME/computer share.

It’s essential to understand that DRSed shares are not automatically booked, and only the booked shares are outside of the DTCC’s reach, providing us with more control over our investments and protecting against potential market manipulation.

To clarify further, let’s revisit the key points about booking shares and the distinction between DRS and booked shares:

  1. Booking Your Brokerage and DRS Shares: When you book your shares, you transfer them into your name on the company’s records, making you the registered owner. Whether you purchased shares through a brokerage account or they were initially held in DRS form, booking them ensures direct ownership and legal recognition.
  2. DRSed Shares Are Not Automatically Booked: It’s essential to note that DRSed shares are not automatically booked. Although they are electronically held in your name on the company’s records, they are still within the reach of the DTCC as long as they remain unbooked. Booking these DRSed shares is the crucial step that removes them from the DTCC’s centralized depository, providing additional protection against potential market manipulation. Quote from the official investor.gov-site:

Purchases made through the issuer (or its transfer agent) of securities you intend to hold in DRS are usually executed under the guidelines of an issuer’s stock purchase plan, which uses a broker-dealer to execute the orders. Thus, to hold in DRS once the securities are acquired, you would need to instruct the transfer agent to move the securities from the issuer plan to DRS.

Now, let’s explore the reasons why booking your shares and having them removed from the DTCC is so critical:

  1. Mitigating Risks of Market Manipulation: Booking your shares and opting out of the DTCC reduces exposure to naked short selling and other manipulative practices. Unscrupulous parties might use unbooked DRSed shares for shorting and manipulating stock prices, potentially harming your investments.
  2. Empowering Shareholder Activism: By booking your shares, you gain more control and influence over corporate decisions. Registered shareholders have greater rights and access to participate actively in shareholder initiatives, such as voting on important matters or advocating for changes within the company.
  3. Transparent Record of Ownership: Booking shares provides a clear and transparent record of ownership. Registered shareholders are recognized as legitimate owners, reducing the risk of fraudulent practices and ensuring that your ownership rights are respected.
  4. Preserving Long-Term Value: Market manipulation can lead to artificial price fluctuations that may adversely affect the long-term value of a company’s stock. By booking your shares and removing them from the DTCC’s reach, you help promote a healthier investment ecosystem and protect the true value of your investments.
  5. Taking a Proactive Approach: By proactively booking your shares and opting out of the DTCC, you demonstrate your commitment to safeguarding your investments against potential market manipulation. This approach may discourage manipulative parties from targeting your shares.

In conclusion, booking your brokerage and DRS shares empowers us as investors to protect our holdings from potential market manipulation effectively. By understanding that DRSed shares are not automatically booked, we ensure that our efforts yield the desired results - increased control, transparency, and protection of our investments.

The long-term benefits of booking your shares far outweigh the initial inconvenience. By taking this step, you not only secure your investments but also contribute to fostering a fairer and more transparent market for all shareholders.

This link will help your DRS your shares with computershare.

This link will help you book your shares, if you have already DRSed them.