123. A bare-bones site to catch you up to speed. ABC.
If you hold stock with a broker or retirement fund you DO NOT legally own those shares. It’s known as “street name registration” and it denies you critical property rights over your investments. See this bulletin, dated July 12, 2023, direct from the Securities and Exchange Commission (SEC). You can also read more here and here. Additionally, here.
If this describes your holdings, your family wealth is in a high risk position.
You wouldn’t leave the bank on the deed to your house after paying off the mortgage. You wouldn't allow the dealership to keep the title to your car after paying it off. Why let brokers and Wall Street keep control of the stock you paid for? Such control often equates to deceptive practice and confidence trickery - along with ruin.
Someone/thing else is the owner (Cede And Company) and that equates to other people/organizations/companies potentially using "your" shares - legally and illegally - without your knowledge.
The DRS - Direct Registration System - is the only way to hold exclusive titleholder rights for a direct, contractual relationship with the companies you own.
The Direct Registration System is endorsed by the Securities and Exchange Commission (SEC).
Registering stock via the DRS is easy.
Again, to be clear, the DRS is endorsed, approved, and backed by the SEC - and, therefore, the larger federal government.
Protect your investments by calling your financial advisor and visiting WhyDRS.org.
Jumping right in...
The following segment is only about 15 minutes long and is well worth the time to watch and will -- quite likely -- be considerably educational. Importantly, it lays some groundwork to better understand the subsequent information.
The Jon Stewart segment is primarily about Wall Street, lobbied-for loopholes, and something called "Payment-for-Order-Flow." To briefly summarize, it's a method by which stocks can be bought and sold - with benefits and drawbacks to everyone involved, some more than others. To expand, take these two quotes from industry professionals for a better idea of the situation:
"When you place a market order - 90-95% do not go to the 'lit' exchanges - do not go to NASDAQ or NYSE, they go to wholesalers and they don't have order by order competition and part of that is because of what you just said; Payment-for-Order-Flow which is, yes, banned in the U.K., in Canada, and Australia and the European Union..." - Gary Gensler, 33rd Chair of the Securities and Exchange Commission (SEC)
"...stocks that have a high level of retail participation, the vast majority of order flow can trade off of exchanges, which is problematic. That price formation is not really reflective of what supply and demand is." - Stacey Cunningham, President of New York Stock Exchange (NYSE)
With Payment-for-Order-Flow (PFoF), the very most basic foundation of much of the stock market and free market is rendered utterly meaningless. If the heart of "the stock market" and a "free market" is supply and demand, then PFoF could be argued to be something akin to heart disease.
Next on the chopping block...
... is an article from Bloomberg Markets from all the way back in 2005, though still eminently relevant. This article is difficult to find and is sourced from the Wayback Archive, which catalogs large swaths of the internet and describes itself as "... an initiative of the Internet Archive, a 501(c)(3) non-profit, building a digital library of Internet sites and other cultural artifacts in digital form."
Via Bloomberg Markets:
In a little-known quirk of Wall Street bookkeeping, when brokerages loan out a customer’s stock to short sellers and those traders sell the stock to someone else, both investors are often able to vote in corporate elections.
George Carlin in Dogma
If you buy a car in full, you get a title with your name on it. Not so with stock/shares - contrary to popular belief. What you get is an I.O.U. Shares you purchase through a brokerage are not, technically, yours - your name is not on them - you do not own them... which has serious ramifications. In short, you have access to them, which entails buying/selling/etc..., but you are not the true owner. Someone else is the owner (Cede And Company) and that equates to other people/organizations/companies potentially using "your" shares - legally and illegally - without your knowledge.
Once again, I'm asking you to understand...
If you purchase shares with a brokerage and/or have a retirement fund, the shares you think you own are not actually yours. You are a beneficial holder, not a share holder. They are not in your name and are not, technically nor figuratively, owned by you. Perhaps hard to believe, but the unadulterated truth nonetheless.
More to the point: shares, if not in your own name, are are, very, very, very, very likely, being used against you in convoluted schemes similar to the 2008 Housing Derivative Meltdown - same sort of derivative-based shell-game & dishonesty, but with slightly different financial instruments, using more techniques of deception - made possible through 1) Wall Street lobbying & associated loopholes ... 2) asymmetrical information access & gathering ... 3) grey area insider trading ... 4) expensive subscription data services ... 5) raw market manipulation ... and more.
It would be as if you bought a car in full, paid in cash, but the dealership keeps the title, and then, at night, they take your car and use it for joyriding, taxiing, rentals, and more - putting miles on it and even damaging it - while you have very little say in the matter.
It's criminal, at the end of the day. That's not new, though, when it comes to much of Wall Street. Habitual criminality is a main-stay - and even encouraged and fostered - in much of the financial industry.
Importantly and a main impetus for this site existing is this: you can insure shares are in your own name using the SEC sanctioned Direct Registration System which legally must be processed when requested - by you. Again, just so we're clear, if shares are held in a brokerage, they are NOT in your name and you do not own them, unequivocally. You must use the DRS if you want the protection afforded by such status.
By "DRSing" your shares they are then placed in your name and are now truly owned by you - such that they can't be used against you in classic Wall Street corruption, loophole abuse, and confidence trickery.
A case study and example...
As it stands now, due to much of the information elucidated above, there are more directly registered shares of Gamestop (GME) than any other company in the entire history of the stock market - more than Amazon, Apple, and Microsoft combined.
That equates to more than $2 Billion / ~1/3 of the company safely locked away in investors' own names, out of brokerage, market-maker, & hedge fund collaboration, safe from potential brokerage bankruptcy, while disrupting off-exchange & dark pool abuse, mitigating Failure-to-Deliver abuse, and other similar confidence tricks, deception, derivative-based backstabbing, and basic short selling.
As such, it's created a once-in-market-history dynamic around the phantom-counterfeit-shares-hedge-fund-abuse-household-investor ecosystem.
To boot, the number of registered shares is increasing every single day.
What we're talking about here is similar to an airline overselling tickets for a flight.
In this case, it's to the tune of many, many, many seats over capacity - magnitudes greater, it looks like, in fact.
As such, the airline needs to get volunteers to be bumped to other flights. Though, in this case, the resentment and grievances towards the associated organizations is such that no one is interested in being "bumped" unless the perks are very (*ahem* very, very) valuable, more than anything any "airline" has ever offered.
By directly registering shares you're guaranteeing a seat on the flight - turning a counterfeit/phantom share/ticket into a real one - and taking part in the price discovery associated with that.
...for the cost of a few gallons of gas...
You are encouraged to protect yourself using the information presented here. The Self-Regulatory Organizations (SROs) throughout the broader stock market - ("We investigated ourselves and found no wrongdoing, Sir! <drool>") - such as the Financial Industry Regulatory Authority, Inc. (FINRA) and the New York Stock Exchange (NYSE), as well as the Depository Trust and Clearing Corporation (DTCC; i.e. "Cede & Co."), will not and do not have your best interest at heart. You are being backstabbed, whether you own stocks/securities or not. Now's our chance to turn around and defend ourselves.
This website is dedicated to education and market literacy. Nothing here should be taken as financial advice.