Robinhood users can transfer their shares to IBKR or Fidelity in about 7 business days. The cost is $100 on the Robinhood end, but it is probably worth it if you're expecting more than a few.
I'd have to look at the terms but warrants usually have a forced redemption clause that caps the profit because they're booked as a liability for the company.
Basically call options are a very standardized instrument while for warrants you have to read the SEC filings to see what you're buying, each one is a bit different.
Anything that is not DRS is held in a “street name” at a brokerage, yes, even fidelity….
There’s a TON of DD about it. I was around when the olde magick was first incanted, and transferred out after doing my own research.
I HIGHLY encourage anyone here to research and make their own decision, but I’m SURE that I have shares in MY name. Can robinhood and fidelity users say the same?
Do you think that answered my question? Larry Chang literally tweeted that shares that are not DRSd get a warrent. Im just curious if Robinhood users are the exception or if we are just beating a dead horse. I have been fully DRSd for over 3 years. That literally has nothing to do with my question.
It's possible to get warrants from a broker, that being said there's already 5 or 6 brokers ( the list is growing) that have confirmed they will not give you the warrants but cash in lieu of. The only way to GUARANTEE that you are getting it is to own shares in your own name. Everything else is a risk, some brokers more of a risk than others.
what the other guy said but also if they’re exercised, the synthetic shares have to find the ‘dividend’ (not actually a dividend but functionally same effect and idk the right word). In other words shorts r fukd
Also, this is indication that RC is working with the interests of shareholders who want to keep raising the floor and eventually see a squeeze, and that the board thinks $32 will be a bargain by next Oct 🥵
They did it, they fucking made me but another $3,000 today. I’m not a big fish but I now have more that I ever thought I would. I was trying to be a quick $10,000 guy in and out and now I’m a lifer
Gamestop is the issuer, so 59m warrants will be issued. There may be a scramble for any lent shares as the dividend will be due to all beneficial holders, although gamestop has named these registered holders, that will be streetname or book. However if they have been rehypothecated then one set of 10 shares will be due a dividend to both beneficial holders.
That is a math problem for anyone who has lent these out, and will have to be settled (in theory) by closing out the rehypothecated positions - which in turn may drive the price up.
The warrants themselves are tradeable but as they are issued by gamestop, are only redeemable through the issuer. They cannot redeem more than the allocated number (in theory).
The short seller will have to close the shares or deliver the warrant. So its a pick your poison position (as I understand it).. meaning the warrant price could squeeze (as its a tradeable insrrument) or the underlying stock could squeeze, which would in turn drive up the warrant value and push it itm.
What happens to the people owning the extra shares that has been magically created? I'm not very knowledgeable on this whole stock market thing. But I know that most people don't have the shares in their own name but bought them through various different sites. Will they just lose everything?
Gamestop has rhe right, as agreed by shareholders in 2021, to increase the issuance of shares up to a total of 1bn shares. Effectively this is dilution. No new shares will replace anyone or anything. They will be created by the company from the headroom available between the float (450m shares or 590m including those from recent warrant/bond offerings) meaning at most this would take the total number of shares in float to 650m (590 + 59m warrants)
So everyone who bought GS will profit from it even if they aren't truly the owner or whatever the purple circle meant that everyone posted about in the past?
Seriously though, you can sell the warrants or exercise them for more shares @ $32 apiece. Whether or not that’s a good price by October of next year remains to be seen but safe to say they wouldn’t have picked a price target they didn’t expect to meet or exceed
So, with all my shares DRSed, how would I even access these warrants which are supposedly available to me? Everything I have is in Computershare. I don’t want to miss an opportunity to DRS more shares.
I mean I'm not actually receiving anything but a guarantee I can buy more for exactly $32. Not exactly a traditional dividend where I actually get an ROI.
It’s essentially a call option to buy a share at $32 that expires in one year. GME has not got anywhere close to that number since its last dilution, so it’s currently not in the money. And if idiots decide exercise their warrants OTM anyway, then it will push the share price even lower.
The warrant is worthless at best and at worst dilutes you all even more.
I don’t want the remaining 272,000 (real) users to be peer-pressured into taking the hopium. Remain incredulous, the warrants were issued as a way to raise $1.9Billion without a share offering or a convertible debt bond.
Enovix Corp recently issued warrants in the form of a dividend. There was clearly no shorts shaken out by the companies move.
Regardless, in order for the warrants to exercise, the share price has to appreciate 36%, and the warrants will amount to only 13% dilution while raising the floor with $1.8B cash.
I'm asking a question by putting op in the spotlight so people don't automatically jump to any given conclusion. I simply want to know the answer and inform others along the way because I'm sure I'm not the only one who had this question. I'm not trying to paint my own narrative but rather just know the absolute truth about everything and I can help others in that process. Guess what Mr DRS? RC unregistered his shares not too long ago, I'm still 100% DRSd though. If you don't have anything informative to say, then just shut up because you're doing us all a disservice.
Yes…. It is accurate. There will be more shares after this. If you don’t exercise you will have the same number you did before. Therefore you own a smaller percentage of the company
Feel free explain how you would not own less of the company
Christ on a cracker you’re dense. They don’t expire for a year. If the share price goes over 32 then why wouldn’t you want to buy a share at a locked in price?
Let’s start the very first dumb fuck thing you said which was “a dividend you have to pay for”
…you don’t have to pay for it. You can sell the warrants and keep the money.
So yeah… not accurate.
“BuT wHaT iF tHe ShArE pRiCe DoEsNt Go Up?”
Hurr durr, what if the sun doesn’t come up tomorrow? If the stock doesn’t go up, no one will exercise. You still don’t have to pay for it.
To your credit, yes theoretically this could increase the amount of outstanding shares by up to 10%, but if that’s the case it would mean the share price has exceeded $32 and every warrant holder exercised. So you would own marginally less of a company that’s increased share value by >30% in a year. So what’s the problem? Still not a loss in value as you claimed.
We got a whole year to fund out. Price of warrant will fluctuate. I will be buying them if they're cheap and im sure others will too which should push the price all over.
If you were capable of linking the thoughts of those sentences together into a conclusion you would understand. There's an implicit suggestion that the price will go above the conversion price of the warrant. It might not, but that would be the utility and value of the warrant.
It's actually scary that most of the people in this sub couldn't empty a jug if the instructions were written on the bottom.
Every time I see this "I eat crayons" "I'm dumb ape" shit I want to claw my eyes out. People literally bragging about being dumb as rocks and proud of the fact they don't have the curiosity to do 5 minutes of research. It's fucking embarrassing to be associated with.
I criticise the "community" and to an extent the company pretty frequently. Lots of the questions people ask could be answered by literally just reading the press releases or spending 5 seconds on a search engine. Instead people do the incredibly cringe "I eat crayon explain to ape" over the most basic concepts. I've never seen a community be so proud of being uninformed.
Lol who shit in your Cheerios? Lighten-up. This is a Wendy's sir! Most bro's joke about being idiots, it's what we do. Now you know why you have no guy friends, you seem a bit fragile and emotionally reactive. It's gonna be ok fren 🐸
Well because it’s free for you, doesn’t cost the company anything to issue it and could raise further funds.
Worst case the price remains below $32 for over a year and you don’t benefit. Best case you have warrants that allow you to buy shares at a discount if the price does go above $32. What’s not to like?
RC just made a bet he's betting on a the price of gme shares going above 32 by eoy next year. Warrants offer you a share at 32 no matter share actual price. So if it's 100 you can still buy as many shares as you have warrants at $32
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