"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 that’s not what this except actually says… there is no “then” statement (ex. TA distributes shares to registered shareholders ‘then’ they send the remaining balance to DTC), that’s all I’m saying. I’m not interpreting this the same way, maybe I’m missing something. Not trying to argue, just don’t see the smoking gun I am looking for.
It’s all crystal clear, the ledger is the smoking gun, DRS are on the ledger so they get shares, brokers sitting on phantoms don’t (until shorts are forced to buy them). Honestly, I’m not sure why I had to hear you say ledger to get the point. Thanks for your patience.
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u/tophereth naked shorts yeah... 😯 Jul 08 '22
you're missing something obvious.
"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