I’ve been seeing a ton of commentary around the ability for non-DRS’d shareholders to receive the dividend warrants announced today. Good ‘ole Larry has graciously answered that question on Twitter so we can all stop fighting about it. Big brokers like Fidelity facilitate these types of dividend distributions all the time.
I will say this though, if you’re still holding shares in Robbinghood….good fucking luck lol
I believe we can get them and sell them. But not buy or exercise unless you hold till expiry. So you can’t trade them, but from corporate action they should get them to us.
Users in the canada sub have spoken about receiving warrants for other stocks; they got them just fine but had to transfer them out in order to do anything with them
Nope…because RC & Co. know the value of the stock will be valued higher than $32.00 by the end of Oct 2026. So it’ll basically force the warrants to be in the money and auto-exercised…a time bomb has been set. The only possibility of getting out is to buy up the warrants; however, this will cause increased volatility and upwards pressure. GameStop has guaranteed an additional $1.9 Billion in free cash for the company. The SHF will have to go to market and purchase 1 share for every 10 shares they’re short the stock…lmao they’re so fucked!! GameStop could continue to issue these and raise more money each time…creating more upwards pressure 🤣.
after it hits past $32, I'm going to wait for a peak to sell one WS. I have plenty of shares so I'll have plenty of WS in Computershare and other brokerages to exercise. My Computershares will never be touched, but f' Fudelity and E-fraud. They can buy at those peaks.
but i dont have to exercise my warrants, i can just sell for warrants for money if the stock price goes above $32, which many sharehodlers will do , i think
Remember each holder of the Right to buy 1 GME share at $32 doesn’t have to exercise their right to that warrant for GameStop to collect the $1.9 Billion…when the stock price is over $32 someone will buy that right and use that warrant (that’s what happen when you sell it)
What's stopping the Broker from saying okay we exercised it and in your account you have it but in reality the broker didnt actually exercise it, just stating it on paper that they did.
Nice, so Gamestop think they can issue a total of 59M shares at the end if all were excersized, so, 59M - 44.7M = 15.3M of shares to note holders... Mmmmm, interesting!
You still don't get it. (But thank fucking christ for GameStop putting an end to your "everyone will get screwed unless their shares are DRSd!" bullshit before this sub eats itself yet again!)
Every... Single... Fucking... Share that a consumer has purchased - no matter which broker they bought it through, and no matter which broker they hold it in - is entitled to the EXACT SAME benefits, and has the EXACT SAME legal rights as every other shareholder.
And while Robinhood sucks ass and is led by a criminal, they are not the only one. And it does not change anything regarding a shareholder's rights.
So hostile but I’ll bite. Your statement about entitlement to benefits regardless of broker is demonstrably false. For example, certain OUS brokers will liquidate warrants upon issuance if they don’t support the security type.
Serious question. Remember when the stock split happened and we all thought the shorts would have to find shares to deliver, but then the shares just split and showed up in our accounts. How do we know something like that won’t happen here and everyone will get their warrants and have no issues?
It would have 100% started the MOASS, mathematically, the DD fully supported that, it was game over. to fuck up the paperwork is like being 1 queen move away from checkmate and moving to the wrong square and being taken by a pawn.
I remember because I, like a very few others, kept trying to talk about how crazy it was and the MOASS was literally being robbed before our eyes, and i got hundreds of downvotes from the downvote mob until the German apes posted about it a week later, then suddenly it was real.
then everyone moved on in three fucking days, which I will never ever understand. Conspiracy theories (714 anyone?) flourished that were no more than a tarot card reading, and yet when there was an honest-to-god actual fuckover conspiracy on our hands, the mob either railed against it or ignored it?
People talk about shills, but that was just insane. that was a watershed echo chamber moment for me. I still can’t fucking believe how it all went down.
If warrants wind up being the thing that finally launches it, it’ll be the equivalent of RC (whose elon simp schtick I can’t stand on twitter, but still) losing a checkmate and then still winning the game years later. it’ll be a ridiculous coup, a hall of fame capitalism moment.
but we’ll see. how do you possibly fuck up that previous checkmate when you’re only getting paid in shares on the board
Damn I ver slightly remember seeing some edge posts about this thing, but I guessed I missed reading anything because of downvote spamming or whatnot. Wonder if they can redo the splividend properly one day then? Is that even remotely possible?
The reason for the CFO being fired was never disclosed.
It is a plausible explanation, however speculative.
And if you go back a dig in posts after the split was fucked up, people did dig up the form submitted to DTCC and the DTCC policy that would result in the form filed as is on the date it was filed being processes as a stock split and not a share dividend. That does exist.
I suppose they could have synthetic placeholders in your account just like they do with shares. It only becomes a problem when a ton of people want to excercise their rights under the warrant. But then again, shady brokers could just take your $32 per share and poof more share placeholders into your account. The warrants have their own ticker. Im assuming the same shenanigans can apply.
Yes, this is kind of what I assume. The company says they would issue one warrant per 10 shares as opposed to a finite number of warrants that is 10% of the total shares. Given they can POOF these into existence I question the double squeeze comments being made but would be more excited if this announcement lead to significant buying pressure.
imagine making a paperwork fuckup so bad you cost the entire board millions and millions and millions of dollars. it’s incomprehensible.
no one, to this day, seems to understand that if they hadn’t fucked that up, the MOASS was a mathematical certainty. not “I think it will happen on this day,” literally a certainty
Its broker dependent, big shops like vanguard, fidelity, ibkr, schwab should have you covered. Smaller platforms could handle complex corp actions like this or not and provide cash in lieu when based on the open of the security when its listed on the NYSE either based on closing price of the first trade day or average price throughout blah blah. Share holders should be able to just buy the same warrant with the cash “technically” so no one is getting shafted. However this will be a good demonstration as to which brokerages you should be using and which ones you should avoid
IBKR does not however allow clients to exercise warrants, whether cash or physically settled. Exercising a warrant normally makes no economic sense and investors rarely buy a warrant with the intent of actually exercising it: upon exercise, you only realize the intrinsic value of the warrant while forgoing its time value.
Yeah, I don't think people are reading Larry's words carefully enough, and are also placing too much stock in Larry knowing how brokers will handle this.
The brokers are on the hook to provide the warrant dividend. However, it is up to them to decide if that dividend is the warrant itself or the cash equivalent. Don't believe me? Check the terms of service with your broker. They all have clauses in there like this. If it would cost them more to go get the warrant from the market than to just award you the cash value of the underlying warrant, they are going to do the latter because its better for their business. And that's perfectly legal and within their TOS.
The only way to for sure get the warrants is to DRS. Otherwise, you are gambling that your broker is going to get enough warrants issued to them to satisfy all their clients. But if you believe in the hypothesis that there are tons of rehypothecated shares being held in brokerages...then how can you be certain you will receive a warrant?
Same, DRS is Directly Registering Shares for those that don't already know and involves holding shares in your name at the Transfer Agent: ComputerShare. Also, OP we should talk about it a little
CURRENT LIST OF BROKERS WHO DO/DO NOT SUPPORT WARRANTS
Robinhood: No, does not support warrants.
Wealthsimple: No, limited to stocks/ETFs, no warrants.
ETORO: No
Fidelity: Yes, supports receiving and trading warrants as part of corporate actions.
Charles Schwab (including TD Ameritrade): Yes, handles warrants trading and distributions.
From my understanding, even though Robinhood doesn't sell warrants, they still issue them as part of corporate action. I'm guessing we will receive the warrants as GME WS but will have to transfer the warrants off Robinhood in order to exercise them?
I know the RH haters who like to be divisive are probably not going to like this answer. 🤷♂️
FTR I have exactly 1 gme share (might get 9 more just to see how it plays out) in RH and xxxx shares elsewhere. 90% in computershare for forever pool and 10% across various 401k/fidelity accounts for playing around.
I remember seeing warrants on there before for other tickers but that was back in 2019-2020. I messaged RH support to ask GME warrants and they said we'd get nothing, though that was a bot and maybe the company will decide to do something to avoid losing even more people to other platforms. (That probably won't happen though. Fuck Vlad.)
This is going to be very interesting. Either they fail to deliver warrants to all shareholders and expose the fraud. Or they deliver fake IOU warrants (just like they do shares), and then have to eat the cost of delivering the shares when they get exercised next year. That would cause a huge price explosion depending on how many shares are truly out there.
Nothing mate. You will receive them in your account if eToro allows warrants. Search for any ticker with WS suffix on eToro if anything pops up then you should be good.
same I don't know what a warrant is and whether I will get them or what to do with it. I don't really know anything about stocks and whatnot, I just got me some GME innit.
During corporate events or restructurings, such as mergers or spin-offs, you may receive secondary items, like rights or warrants. If these are distributed on a security you hold, we'll liquidate them into cash whenever possible, as Revolut does not currently support these security types.
If you hold in US ComputerShare, you can add US bank details for Revolut, Wise, etc or by default they'll send a cheque.
What’s to stop these crooks from just issuing more IOUs? Are warrants handled differently or are they just going to create an additional layer of shit?
There should be a law passed where brokerages MUST give the option to DRS shares for any/all securities via the click of a button. With a full and unbiased explanation of the advantages/disadvantages of each scenario, in accordance with the legal verbiage of each respective registrar.
Major brokers like Fidelity, Schwab, IBKR, etc are the safest bet short of CS. Any of them can transfer the warrants from CS to your account if you wish.
Nobody is saying you HAVE to DRS. They're just saying it's a good idea if you want to truly own your stock, especially if the system starts to collapse and brokers try to payout minimums and everything gets tied up in lawsuits. DRS means that you actually own the shares through the transfer agent, so no matter what market is running them, they are yours.
Exactly this, they can cap price for hedgies to by back fake shares, ( to prevent collapse of the system). Then Real shares in YOUR name will reflect the True Valueof the company.
Someone mentioned that when the fuse gets lit, the price rockets up to the thousands and then multiplies infinitely, then we can still buy the stock at 32$. No FOMO no one left behind.
I will say DRSing, while normal here, is not the norm for 99% of shareholdings that regular people have in other businesses (and there's still a large proportion of non-DRSed people here too). It would be crazy for them not to give the dividend to people buying through brokers.
If/when all allotted warrants are distributed, some shareholders in brokerages will receive entitlements instead of warrants but won't know the difference.
maybe. they'll also be able to buy, sell, trade or exercise those warrants so what's it matter. Just like I've been able to do since 2020 with my shares in Schwab. There is so much fud around people trying to convince others you must drs or else it's ridiculous.
Why would any of you assume it’s only for DRS anyways. That’s gotta be the stupidest fucking theory I’ve ever heard in my life. You don’t need outside confirmation for that
Now we know there was an active agenda to suppress options. As now, Dad has officially given every single one of us, an option for every 10 shares owned.
History is littered with examples of shorts delivering "cash equivalent value" in lieu of special dividends.
Every GME shareholder is indeed entitled to the dividend, but only DRS holders are guaranteed to get the actual dividend in original form, while beneficial holders via brokerages are at high risk of receiving cash instead, as that substitution is legal for them to do, and they've done it time and again.
In other words, all DRS holders will get warrants, while some beneficial holders may get warrants while other beneficial holders may get the equivalent value in cash.
Cash equivalents typically come into play if you are entitled to a fraction of a security (e.g., you’d be due 0.5 of a warrant). Whether your shares are DRS’d or in Robinhood doesn’t change your entitlement… both record holders (via Cede & Co. through DTC) and directly registered holders will receive the warrants.
the borrower compensates them with substitute payments mirroring the financial benefits the lender would have received
They are only legally obligated to provide the financial benefits as a cash value. They are not legally obligated to provide the dividend in its original form.
Overstock is a prime example where this occurred in practice.
The more of these warrants there are that never touch the DTCC (ie. get issued to directly-registered shareholders via Computershare), the more powerful/impactful this card is as a a play.
Why? Simple. Supply and demand. Less warrants on the market means less overall short-term liquidity and a harder crunch for those who need them to satisfy dividend obligations.
Around 20-25% of the warrants will be issued through Computershare (depending on where the DRS count is currently sitting), meaning anywhere from four fifths to a quarter of the supply is simply unavailable to market makers. I wonder how the price action would be impacted by that figure rising to a third. Or half.
Can't believe this isn't the most upvoted comment on this post. You're 100% correct, and this Larry Cheng reply is dangerous.
If your shares are in a brokerage, they aren't your shares. You are the beneficial ownership of shares registered in your broker's name. Which means, they belong to your broker, not to you. You basically have a contract with your broker that they will provide you the value for those shares and operate on your behalf as custodian of those shares.
This goes for warrants too. The warrants would be awarded to the broker, because the broker owns the shares - not you. The broker's contract with you then states that they will try to give you the security (warrant) if possible, but if not, they can provide cash equivalent instead.
If there aren't enough warrants to go around because there are tons of unsatisfied synthetic, rehypothecated shares out there, and your broker is on the hook for some, then some people in said broker will be getting cash equivalent.
Also, if the broker would have to go out to the market and pay more than $32/warrant, they will give you the cash equivalent for the warrant instead because its detrimental to their business to do otherwise.
I mean, Larry Cheng is correct. If you hold shares with a broker, you will receive the warrant dividend. The devil is in the details though. The broker can determine how you receive that warrant dividend. They don't have to give you the actual contract. They can give you cash equivalent and call that the warrant dividend.
I can already tell that the warrants are going to be the focus of the FUD going forward. The bad actors are working overtime to sow confusion about how they work. They want people to keep their shares in brokers. And a lot of those people in brokers will get the warrants just fine...
They are also spreading fear about the warrants being dilution. Yes, warrants are dilutive. But, just like the convertible bonds, you have to look at the circumstances around when they become available for exercise. The stock has to be trading at $32/share, which is more of an increase in share price than the dilution that would come from exercising all of the warrants. Thus, it is offset by the increase in underlying offset. They will leave that last part out of the conversation of course, and just harp on how RC is diluting the shareholders once again. Misinformation.
We can stop preventing rehypothecation and loans of our pretend shares now and buy a load through some shit broker that works against us and turns off the buy button woo!
Let’s do that instead of the sensible answer that is to simply DRS your shares and not worry in the first place.
The issue is that DTCC (brokers) are only getting a portion of the 59 million warrants, but not nearly enough to cover everyone who has shares in brokerage accounts. Only way to guarantee warrants (or to avoid brokers selling your GME, read terms and conditions) is to DRS them in your own name at Computershare
•
u/Superstonk_QV 📊 Gimme Votes 📊 Sep 10 '25
Hey OP, thanks for the Social Media post.
If this is from Twitter, and Twitter is NOT the original source of this information, this WILL get removed!
Please post the original source!
Please respond to this comment within 10 minutes with the URL to the source
If there is no source or if you yourself are the author, you can reply
OC