GameStop Corp ๐Ÿ’พ ๐Ÿ›‘ (GME) Share Chat

Did go through after a few minutes, but every previous purchase just sailed through with no issue.

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https://news.gamestop.com/stock-split

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GameStop publicly calling out the DTC for not issuing shares and asking brokers to initiate a split without issuing shares to them.

This could be interesting.

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@NoBeef did you get any update on the statement from FT reflecting the receipt of dividends vs a straight split?

Not as yet but Iโ€™ll chase them for an update now

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No update, will chase tomorrow when relevant team working

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As I understand it, the key questions to be answered by FT are:

  1. Were the additional shares now showing in my account brand new shares, or a dividing-up of the existing shares? (Correct answer: brand new)

  2. If the shares were indeed brand new shares, where were they sourced from? (Correct answer: DTCC)

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Freetrade donโ€™t โ€˜holdโ€™ anything, they mirror our position with Drivewealth.

Which takes you to the crux of the issue.

Theres nothing unusual about this. No broker in the UK holds your shares directly unless you give them permissions to do so. But in doing so you put your shares at greater risk.

FCA rules require shares be held in a separate custodian to provide protection of the assets from the broker. Its standard practice to hold shares with a custodian. Freetrade also arenโ€™t โ€˜mirroringโ€™ your shares, theyโ€™re not holding any of your shares at all. They are reflecting what shares you hold with drivewealth within the Freetrade platform. Same as buying UK shares, they reflect what shares you own which are held with Freetrade Nominees Limited.

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True. Thereโ€™s nothing unusual about these arrangement apart from GME. Thatโ€™s the bit that needs unusual arrangements. GME has become the most directly registered stock in the market for a reason.

Weโ€™ve said the same thing, mirroring/reflecting.

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Any custodian that had to block the buy button due to clearing housing insolvencies is part of the problem. There is risk there. And he to mirror is to reflect, no?

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I was seeing mirroring as possibly being copying, which is one definition. To mirror something digitally for example is to make a copy. Which isnโ€™t whatโ€™s happening. Reflect is more symbolic, more like to show a representation, or symbolically link but not copy.

Thereโ€™s so much fud and misinfo going around on these shares. But I was probably just a bit to nit picky :smile:

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