The DRS/direct registration/switch from street name to record name “movement” is a bonafide Reddit Moment.
I am a corporate lawyer. I represent public companies. I have watched from the side lines as you all have talked for the last year or so about how revolutionary you are being by demanding the transfer agents of the companies in which you own stock move your shares from the street names of your brokers to your own registered names at AST, ComputerShare, EQ (pre-merger) etc. Here is an example: https://www.reddit.com/r/wallstreetbets/comments/lb1b6w/checkmate_wall_street/
My impression has been, wow, these people really have no idea how absolutely insignificant this move is to the brokers weighed against the negative effects it is likely to have on their companies, whose expenses for administering this increased number of registered SHs are going to go up substantially.
Now I’m starting to see the rubber meet the road. This week I saw the first invoices from Broadridge for annual meeting services this year, which are up 35-65% for my clients because their registered shareholder pool has gone up by, depending on the client, hundreds/thousands of individuals/entities because of your “movement.” I guess you don’t realize that for every new registered shareholder, the company has to pay like $1,000 extra each year to Broadridge for searches, report tabulation, voting, mailing proxy statements and cards, mailing annual reports, etc. not to mention many issuers are now exceeding the limits of the transfer agent contracts so they are paying per SH out the ass to AST/Computershare. I am seeing company’s annual meeting bills and transfer agent quarterly invoices go up by $100,000s for absolutely no reason. I can only imagine how crazy the transfer agent/Broadridge bills are this year for a true meme stock like GME; I assume at least $1 million.
I really have no skin in this game other than the solvency of my clients so they can pay my invoices and I don’t really care either way really except I think it’s funny to point out that by taking this untutored stance against your brokers who, trust me, don’t give a shit whether your 23 GME shares are on their books or AST’s, you are actually costing the companies you are trying to long literally hundreds of thousands of dollars for basically no reason (not to mentioned the poor beleagured stock administration teams at your portfolio companies who are like, “wait, what someone wants to hold 7 shares at AST, that’s like 20 minutes of paperwork I didn’t need or want to add to my plate”).
In other words, you played yourself.
Submitted March 12, 2022 at 12:24AM by -KingintheNorth-
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