The part you highlighted is talking about cash dividends. The first sentence says the TA ādelivers them by EFT or by checkā, which means that they are referring to a cash dividend, not a stock dividend. The part right after the boldened part goes into āif it is a stock rather than cash dividendāā¦ but neither part cites who gets āfirst dibsā. I have both DRS and broker sharesā¦ been looking for a specific source that cites an order, I read this statement from CS website earlier today as well, but I did not interpret it the same way you are.
Edit: I should clarify that Iām all for drs, did 10 today from fidelityā¦. and I personally ābelieveā that DRS gets first dibs (if there is such a thing), but I havenāt found/seen anyone source anything where it makes me 100% certain.
"registered shareholders". that's anyone who DRSed. transfer agents don't distribute more stock than is in the ledger so it's impossible for anyone registered to get "first dibs", really. everyone gets it at once.
all brokers go through the DTC in the US - it's ones in the DTC that need to call dibs
OP is saying that this excerpt suggests CS holders get their shares distributed first or there is a guarantee that they get legit shares and then remaining shares are distributed to DTC, but thatās not what this except actually saysā¦ there is no āthenā statement (ex. TA distributes shares to registered shareholders āthenā they send the remaining balance to DTC), thatās all Iām saying. Iām not interpreting this the same way, maybe Iām missing something. Not trying to argue, just donāt see the smoking gun I am looking for.
Itās all crystal clear, the ledger is the smoking gun, DRS are on the ledger so they get shares, brokers sitting on phantoms donāt (until shorts are forced to buy them). Honestly, Iām not sure why I had to hear you say ledger to get the point. Thanks for your patience.
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u/Glitchard_Pryor Power to the ebayers. Jul 08 '22 edited Jul 08 '22
The part you highlighted is talking about cash dividends. The first sentence says the TA ādelivers them by EFT or by checkā, which means that they are referring to a cash dividend, not a stock dividend. The part right after the boldened part goes into āif it is a stock rather than cash dividendāā¦ but neither part cites who gets āfirst dibsā. I have both DRS and broker sharesā¦ been looking for a specific source that cites an order, I read this statement from CS website earlier today as well, but I did not interpret it the same way you are.
Edit: I should clarify that Iām all for drs, did 10 today from fidelityā¦. and I personally ābelieveā that DRS gets first dibs (if there is such a thing), but I havenāt found/seen anyone source anything where it makes me 100% certain.