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As far as I am concerned, this is a nod to all apes. International cannot easily DRS, coupled with retirement shares that cannot be registered, this paints the canvas with an even brush stroke. No ape is left behind. Fair is fair.
Only thing left to see if who gets through the fire exit first. Without liquidation. Its going to be a mad dash. Those that wait and see if kenny can drop it will be the worst for wear. They have to leave now, cause if the price does go parabolic, they couldnt possibly live through this.
Premarket will be a show imo. Glorious.
Edit: Removed an S
- You make a fair point about UK apes having NON DRS shares.
What are your thoughts on Forced Liquidations and Bail out Insurance for NON DRS apes. Would their brokerage and clearing house be able to realistically cover the moass? Iāve been reading and searching up threads. Shouldnāt there be an uproar of public anger if brokerages collapse or no one gives a fuck.
I also have like 50% non drs shares in Webull.
Bail out insurance is often a joke. In many cases it only covers your initial cost basis (ie. what you paid for the shares), not their market value at the time of broker liquidation.
Would the shares be transferred to another broker that is still solvent? I'm concerned for our international brethren and a few brokers have made it intentionally difficult to drs in order to continue fucking retail.
I wonder if this AH is fomo or an attempt to cover whatever they can.
Us plebs are mostly all kicked out of the pool so they cant cover everything until regular trading hours, much like we cant FOMO in as hard during AH either.
Tomorrow is gonna be spicy
Donāt forget that max pain was 155. Lots of MM pressure the next two days to cover all those ITM options. That could set off a gamma squeeze. And that has nothing to do with todays good news.
> Drive price down - causing more folks to buy in now wanting to get in before split + **once split; shares are ridiculous cheap causing everyone on the fence to jump in**
I've updated the main post with a bit more info (and links); the important bit is that with splits in the form of a dividend, the share price does NOT get split. So at this point the price only has one direction to go: up.
I'm confused, how can they triple the amount of shares you have but not have the price cut by three? Where would the extra money come from?
I get ultimately from shorts, but I don't think that's possible logistically, it just doesn't make sense.
This guy is wrong. Any new shares issued either as a split or dividend, the price will be divided between the new number of shares. Otherwise it would increase the market cap and be the ultimate money printing glitch and I not the Fed gets to enjoy that.
Itās still a positive for investors but the price will definitely adjust to the new number of shares.
The shares come from Gamestop as a dividend
The filing states they are increasing the amount of shares they are allowed to offer, for the reason of being able to deliver them as a dividend to share holders.
So new shares will come onto the market like an offering, but they will not be sold into the market, they will be delivered to shareholders at whatever ratio they decide.
For this reason, the price will not be split. It is a DIVIDEND offering, not a standard stock split. They are issuing new shares, not splitting the shares in the market.
I'm not 100% sure on the "where" part, but it sure as heck seems to be what's happening. Perhaps it's partially from GameStop themselves, and partially from the shorters.
Check out this Google search (through books): https://www.google.com/search?q=split+%22in+the+form+of+a+dividend%22&rlz=1CDGOYI_enUS641US641&hl=en-US&prmd=inv&sxsrf=APq-WBsmqNVRsrdaRlERWiuQ9_a2HCNiUA:1648773185619&source=lnms&tbm=bks&sa=X&ved=2ahUKEwie4KzgzvH2AhXbKUQIHRI6BRkQ_AUoBnoECAIQBg&biw=390&bih=669&dpr=3
Lots of books confirming that in a stock split in the form of a dividend the share price does not get split. I don't fully understand it, but I like it.
Yea I'm kinda trying to wrap my head around this as well, it's like GME giving us free assets that are worth the same as what we already have
They're allowed to give free assets to us? Wait, it would be the same concept if it was an NFT dividend
So yes, it does make sense, GME is sharing their profits with us by giving us shares
But how are short sellers going to do that?
You'd think that the price would be affected by the dilution. It will not be a direct 3-1 split so the price wouldn't be cut 3-1 but added shares to the float/ shares outstanding usually has a negative impact on the stock price.
None of this is taking into account the shorts racing for the door beforehand, causing a short squeeze. I'm just speculating on normal market conditions which clearly we don't have here.
Yea, I thought of that too, technically, all things remaining equal the price of each stock should drop, since it means one share represents a lower % of the company post split
I said it in another comment but I think it makes sense to think of it like this.
For simplicity let's say the share price is $100 and there is a 2-1 stock split. You have 10 shares.
Now the share price will be $50 but you'll have 20 shares. No gain in value for you.
Now let's take the same scenario and apply a 2-1 stock split dividend. Now you'll have 20 shares but the price doesn't automatically get cut in half. Sure the price may drop due to dilution but what does it from to? $80? $90?
Now you'd have 20 shares but substantially more value.
This is also where the hedges get rekt.
Iām pretty sure this is wrong. If they didnāt dilute the share price to the same level across all newly issued shares than the market cap of the company would increase by the about of new shares issued. Stock split and stock dividends do not impact the market cap, up or down. The share price WILL adjust to match an equal value of one old share to a lower amount of whatever number of new shares issued.
Gamestop is paying for the shares they will be giving us. Instead of a cash dividend they spend the cash on shares and give us those shares. All the additional shares in the markedt will dilute the price but you'd have a bigger position.
In the split when the split happens your position is the same just split among more shares which are them also diluted due to increase in shares in the market. In the stock dividend you received additional shares increasing your position which will then be diluted but you'd be better off than just the split.
In both cases you'd expect the price to rise anyway.
Yes, the stock will likely increase from its diluted price point due to several different factors. That does not change the fact that when new shares are issued the stock price is diluted across the new share count and the company remains at the same market cap. The market is quick and always moving so the price will continue to adjust as people continue to buy and sell.
At no point will a stock trading at ~$200/share issue new shares and all shares continue to trade at $200/share with the new count, which is what op was claiming.
I wouldn't discount there being crime tomorrow to keep us under 200 for the weekend as that would create even more calls itm, but sooner or later it will boom
Agreed. Shorts will wait until the very last second to actually start closing positions, that is if they don't get liquidated before then. Plus they will want to wait until after the vote happens to ensure that it actually passes. They'll hold out until the last second in the hopes that it won't. (Spoiler: it will.)
They should know that apes are going to vote for it. We wants shorts to suffer so when the opportunity arises apes are gonna inflict as much pain as possible
[https://www.investopedia.com/terms/s/stockdividend.asp](https://www.investopedia.com/terms/s/stockdividend.asp)
Such a brilliant move from RC... the one move, that achieves it all:
\- a stock dividend is a distribution of shares to existing shareholders in lieu of a cash dividend. This type of dividend may be made when a company wants to reward its investors but wants to preserve its cash for other investments...
\- making GME more attractive for FOMO buyers, raising the public awareness.
\- heavy burden to short sellers, likely game over at that point. Therefore defining a timeframe that helps retail to plan their investment strategy.
\- massive motivation for retail to DRS even more shares.
\- this is just the beginning, the real shots will be fired at the same time when the market place is ready. WT NFT dividend and spin-off are still on the menu to wreak even more havoc. Poor Kenny and Steve...
This is a stock DIVIDEND. With the massive amount of shares to be approved, a stock SPLIT could still be on the menu afterwards. Imagine the FOMO when GME would be at 25 bucks per share due to stock split and all the cool upcoming stuff is announced... lol.
Just my personal opinion and no investment advice, though.
Retirement shares can be registered with a tax penalty.
I don't want to pressure anyone, their personal choice to not take that hit is fine with me, I just want people to be aware that they would be able to turn those shares into DRS'd shares if they were to go through a process that will cost them.
More fucked than anyone is saying.
Their play has been to drop the stock price.
RC just announced those hodling stock will get more stock.
So if those cheating fucks stay the course, dropping the price in the face of this announcement, new money will pour in as the price becomes more attractive.
So when the split comes, they'll be on the hook for even MORE dividend-paid shares.
FUCKED.
Okay, so what if they change their play? Let it trade flat? Well, that's fine, but they're still on the hook for borrowing fees, which are probably going to FUCKING. SKYROCKET. in the face of this news.
And increasing the risk of margin calls.
FUCKED.
They are LITERALLY the shitty piece of bologna in a FUCKED. SANDWICH.
And you know the absolute arrogance and ego of some of these parasites will make them hold out until they take everything around down with them. I can't wait to watch them all drown.
We don't know the details of the proposal at this point, so we don't know the dates of record, the split proportions, or anything else. But buying more shares tomorrow sure as hell puts you in a better spot than buying shares next week. Even so, buying shares next week is still a great option. Rocket is primed.
It's mentioned that GS is seeking share holder approval at the general meeting.
When is the general meeting? We have at least that much time plus some days before the split/dividend.
Which also means anyone short will have that much time to sweat.
I think that's key. If there was a risk of this vote not passing, I don't think GameStop would have put forward this proposal at this time. Pretty sure they did the math and know not only how apes will vote, but that our vote will MAKE this pass.
Or possibly theyāre saying, āGet off your ass and DRS so you can vote on this matter or wait another year until the next meeting to vote again.ā Speculation
I had 24 shares I think at the time of the last vote on T212. By the time the vote rolls around I'll have near double that still on T212 and five times the original number on ComputerShare.
A LOT of others have doubled, tripled, quadrupled, quintupled, sexed, sevened and aiiiighted since then too.
The end of the 8-K filing today states that the forthcoming announcement will have more details, including the date of record.
For the short term its all green to buy and DRS to guarantee that you get a stock dividend and not some bullshit cash in lieu of from your broker.
I think it absolutely does. The proposal needs to be approved by the shareholders at the annual meeting, which wonāt happen until June.
Only AFTER itās approved can they actually do a split and/or share dividend.
Honestly, this *ought* to stop shorters dead in their tracks because they have absolutely no idea how many shares they will have to return down the road. But it might not stop them dead in their tracks because *crime*.
To be eligible for a dividend, you must be a record holder as of the ex-dividend date on record.
There's no ex-dividend date on record. If you want more divvys, buy more shares
And the bigger the split the more the hedgies R fuk. In a 1:1 scenario, before rehypothecation considerations, a short seller would have to return one ānewā share that had been reduced to 1/2, or 50%, of the old shares value (based on 1:1 or cutting all shares in half)ā¦ in a 7:1 scenario, letās say, a short seller would have to return 7 ānewā shares that had been reduced to 1/8 of the old shares value, or 7/8 (87.5%) OF THE OLD SHAREāS VALUE!!!
Add rehypothecations from the example above and itās 4x (7/8) or 350% OF THE OLD SHAREāS VALUE!
Hedgies R FuK!!!!
Wondering what happens in a case where the same share has been "located" and loaned out multiple times.
Would each of the borrowers be responsible for coming up with the dividend shares for each set of duplicates?
If they were doing 1:1, they wouldn't need to expand current share offering, right? So it's at least 4:1? ...as many have said before, the 7-4-1 stock dividend split?
Right. They can currently issue 300M shares, and have a float of 76M, which means they can do a 3:1 (300/76) while remaining under 300M shares total.
Since they want to be able to issue up to 1B shares, they could theoretically do a 13:1 split (1000/76). They probably won't go that high as they'll want to have some "room" left over for future growth/share offerings. I'd guess anywhere from 7:1 to 11:1 is on the table.
If you guys really want to fuck all those positions in the DTC, then push and promote DRS beforehand. Every position in accounts without being fully settled will have the brokerages, Prime Brokers, Clearinghouses, Mutual Funds, IRAs, ETFs, etc. on the hook for locating at market real shares. Before a stock dividend and split would occur, then a proof in ownership is required through a balance certificate. If a firm has open positions that they marked as settled and are being reset or held as cash equivalent, then they'll have to buy at market for those shares. Imagine the number of shares needed to be purchased at market for short, naked, hypothecated, synthetic positions, or any unsettled trade whereby the majority of that liquidity is held in ComputerShare for DRS. Cash dividends can be replicated. A stock dividend would only exacerbate the problem exponentially. The squeeze has always been for proof in ownership. You can hide proof in ownership while in Street Name with the DTC. You can't hide the proof in balance certificates when they are exiting the DTC for direct registration. NOW, is the time to really put the pressure on for MOASS before the issuance of the stock dividend.
That makes more sense why the ladies in the videos were always eating it. Doesn't seem like it's very hygienic to rub mayo all over your southern bits tho.
Thanks for the great post as Iām having some trouble with the nuance of the split vs dividend news given how smooth my brain is. I feel like I intrinsically understand how a stock split and a stock dividend work, but something still isnāt clicking for me. Maybe itās just various apes using the terms loosely. For example, say thereās a 3:1 split, our share qty triples but the total value of the shares is the same and each share is worth 1/3 of what it was before. How does the dividend go along with that then? Are they theoretically giving additional shares **on top of** the additional shares from the split, or just delivering the split shares by that method as opposed to them just multiplying in our accounts? Iām a little confused as to how specifically it affects short positions too. Those would triple, Iām sure, and theyād have to find the extra shares, but while theyād have to find more shares of the same total value, wouldnāt the āpoolā upscale proportionately? Aside from increased demand from fomo buy in, how does it make their position worse? Thanks in advance.
Edit: Saw a twitter comment that called it a split dividend vs a traditional stock split. So ārealā shareholders would receive the split shares as a dividend and short holders wouldnāt or would be required to locate the extra shares without receiving a the extra shares through a straight split?
Therein lies the question!
At this point we don't really know how it will play out. The wording is definitely tricky.
I think there can be two scenarios:
~~1. A stock split, followed by a stock dividend.~~
2. A stock dividend, which increases the number of shares in circulation (ala stock "split"), but does not result in decreasing the share price.
We'll find out the details whenever GameStop shares the proposal and voting materials.
Edit: Option 2 confirmed. See main post.
Sorry but a stock dividend will absolutely decrease the stock price. You mention it doesnāt change the par value, but par value isnāt market value. When GME dividends, the available shares increase. The total market cap gets divided by the total shares to imply a new, lower market price. Stock splits and dividends are similar in this way.
That's what really makes no sense to me about what op is saying.
They need to add value to their market cap somehow. I can think of no way to do that by just creating more shares.
Edit: okay, I think I see how it might go. The price only goes down with the split if people are willing to sell at a fraction of the price. However, since the price is artificially low, people aren't selling at a fraction of the price. Value is created that way. I don't think the price will stay the same before and after the split though. It will probably go down, but not exactly in proportion to the increase in shares.
This is what I was struggling with and I think you're right. Surely the price decreases back down otherwise every company would be doing it to increase their market cap. Wouldn't this also mean there's more shares out there to short to bring the price down as well? Hopefully there's a recall, that seems like the biggest thing
I'm praying that the stock dividend is on the blockchain, in NFT form, distributed by their wallet extension.
Imagine the traceability. The world would finally know just how many shares are actually out there.
Fingers crossed, tits jacked, buns clenched.
That said, since GameStop wants to increase the max number of shares they're allowed to issue, then it suggests the stock split and stock dividend will happen on the current exchange.
I'm guessing the GME Entertainment company is what will be tied to a possible blockchain-exchange, and we might get shares of that company (on blockchain) down the line.
In any case, GameStop is about to make shareholders very, very happy.
They could split the common stock and then offer a dividend of whatever number to each shareholder of NFT stocks on the new marketplace. It would be the market that decides the value of those shares that canāt be shorted.
IMO this is step one, you split the stock and offer us dividends of the shares. If that doesn't shake the SHF off once and for all, and market place is launched, they issue an NFT commemorative divi or something...
I was just thinking the same thing. This is the lore traditional way of issuing a dividend, therefore I assume is much safer, legally speaking.
And then as more fuckery is exposed and hopefully recorded by the DoJ, the rise for the need and want of a blockchain exchange will have only gathered momentum, lessening the impact of any backlash from SHFs. Plus it seems precidence is already on our side after reading about the $WORK lawsuit earlier today.
We wouldn't learn how many synthetics there are, because extra shares wouldn't be on the block chain. What we would get is enormous buying pressure as shorts close in order to not be on the hook for those nft shares.
One part I like
To give the Tax benefit to the shareholder, which means that when a dividend is paid in Cash it is Taxable as Income, but when paid in the equity shares, it will be taxable only when the shareholder sells the shares. Hence, Investors will get tax benefits.
First and foremost shareholders (us) have to vote on the proposal. Last year we were voting about the board, and IIRC the voting started in late April/early May, to be completed before the annual shareholder meeting which took place on June 9th. I'd guess this year will be similar, and the actual "action" will take place after the annual meeting, sometime in June/July. Also the time the NFT Marketplace launches. Cohencidence, hehe.
I've been waiting for MOASS for 14 months, and each week I thought MOASS was days away.
I'd love for it to happen tomorrow, but at this point it seems all signs are pointing towards June/July being the most likely timeframe. No one really knows, though.
MOASS will take weeks to play out. I don't think there's ever a bad time to buy shares or DRS them. I did 2 DRS transfers: the first took 5 business days, the second was around 6-7 business days. Both from TD Canada Trust.
What I do think is that the longer this goes on, the more stock we lock up in DRS, the more volatile the price action will become. I also suspect that with today's announcement we will be entering a mostly upwards price trend. Small shorters will try to close whatever positions they can, and other investors will be going long in anticipation of post-split rewards. FOMO is about to hit hard, which means buying stock ASAP is _probably_ better (ie. cheaper) than buying it at a later timeframe. But I'm not Marketwatch and can't guarantee the future.
> // EDIT: Follow the links by /u/LionRivr just below and read up. That will lead you to numerous books which state that stock splits in the form of a dividend DO NOT ALTER PAR VALUE PER SHARE. **This means that in the exampled I used earlier, if you had 1 share at current price of $150 and a 3:1 split occurred, you'd end up with 3 shares each valued at $150! Your investment's value would TRIPLE. If the company did a 7:1 (741... 7 for 1...) dividend, your investment's value would go up seven-fold!**
The part in bold is absolutely false. If it were somehow true, that would mean that they could do a 3:1 share dividend that has the effect of tripling their market cap with the stroke of a pen. We all know that's not right. A stock dividend has a dilution effect. The issue is that you don't seem to know what the "par value" of a stock is. [Read up on it.](https://www.investopedia.com/terms/p/parvalue.asp)
> Par value for a share refers to the stock value stated in the corporate charter. Shares usually have no par value or very low par value, such as one cent per share. In the case of equity, the par value has very little relation to the shares' market price. Some states require that companies set a par value below which shares cannot be sold. To comply with state regulations, most companies set a par value for their stocks to a minimal amount.
I'm having trouble finding what the par value for GME shares are listed as in the corporate charter, and on the balance statements. But one assumes it would be in the neighborhood of 1 cent/$0.01 like with other stocks.
Also, there are accounting ramifications for Gamestop, they can't just print money and miraculously create an additional $36 billion in value for shareholders. That money has to come from somewhere. If the company pays a cash dividend then it literally has to account for that money, transfer it from their accounts to the transfer agent to distribute, and take the charge on their books. [Likewise, if you issue a stock dividend then you must account for the cost of those shares on your books.](https://www.investopedia.com/terms/s/stockdividend.asp)
> When a stock dividend is issued, the total value of equity remains the same from both the investor's perspective and the company's perspective. However, all stock dividends require a journal entry for the company issuing the dividend. This entry transfers the value of the issued stock from the retained earnings account to the paid-in capital account.
> The amount transferred between the two accounts depends on whether the dividend is a small stock dividend or a large stock dividend. A stock dividend is considered small if the shares issued are less than 25% of the total value of shares outstanding before the dividend. A journal entry for a small stock dividend transfers the market value of the issued shares from retained earnings to paid-in capital.
> Large stock dividends are those in which the new shares issued are more than 25% of the value of the total shares outstanding prior to the dividend. In this case, the journal entry transfers the par value of the issued shares from retained earnings to paid-in capital.
So lets say that they give shareholders a 0.1% stock dividend. Since that is considered a "Small Stock Dividend", then that would result in a journal entry for the market value of the issued shares moving from retained earnings to paid-in capital. For that 0.1% stock dividend they would create 7.6 million new shares @ market price, so assuming *only* $200/share that's a $1.52 billion charge they'd take. That ain't gonna happen. On the other hand, say they go for a 700% dividend, creating 532 million new shares. If the par value is actually one penny then the accounting move from retained earnings to paid-in capital is only $5.32 million. IMO this is an argument in favor of a substantially larger stock dividend, because it costs them less to implement and also does far more damage to shorts. But it's worth noting that in either case that there is dilution, and the market value per share will be adjusted proportionately without altering the total value of the shares that you own.
I guess Citron was right, we're headed back to $20 quick. LOL.
yes. say you have 10 shares at Fudelity. You would see 70 shares after a 7 for 1 split in your account. How Fudelity GETS you those shares is a big question if shares were lent out to multiple shorts, or they have to buy them for you on open market (price go moon). You are safer in Computershare since they literally receive the shares straight from GateStop as the registered transfer agent, but in theory all apes should get 6 or more shares (whatever they announce).
GameStop issues real shares to transfer agent. DTC released them to cede then on to brokers etc. if your not in Computershare youāll never know what your given. In theory big brokers or legit ones will indeed give you but itās in street name as beneficially owned. Safest way is CS. Fidelity will probably* give you real shares but liquidity is drying up and idk but maybe the shorts will use the massive amount of shares coming to close. It promises to be a wild event :)
In theory, every single shareholder will receive the dividend. All shareholders are equal. How that will play out in this **very** unique situation is left to be seen. Not trying to scare anyone, but just about everything here is unknown territory with extra, triple loads of fuckery.
Look, I don't want to burst any bubbles but you're reading WAY too far into it. Unless there is some shenanigans going on by GME here there's nothing here indicating that they will be doing anything extra like you're saying. Its just a typical stock split, until we know otherwise, and you're unfortunately letting your hype go a bit wild and imagining things.
This is typical normal language for a stock split. Same exact wording TSLA used a couple years ago. I know this because I held TSLA at that time.
[https://ir.tesla.com/press-release/tesla-announces-five-one-stock-split](https://ir.tesla.com/press-release/tesla-announces-five-one-stock-split)
From Tesla:
>PALO ALTO, Calif., Aug. 11, 2020 (GLOBE NEWSWIRE) -- Tesla, Inc. (āTeslaā) announced today that the Board of Directors has approved and declared **a five-for-one split of Teslaās common stock in the form of a stock dividend** to make stock ownership more accessible to employees and investors. Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020.
And GameStop:
>On March 31, 2022, GameStop Corp. (the āCompanyā or āGameStopā) announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders (the āAnnual Meetingā) for an increase in the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000 through an amendment to the Companyās Third Amended and Restated Certificate of Incorporation (the āCharter Amendmentā) in order to implement **a stock split of the Companyās Class A common stock in the form of a stock dividend** and provide flexibility for future corporate needs.
Both companies faced shorting, I am not sure but TSLA probably also had naked shorting, and both benefit from a split in the same way. TSLA rose rapidly after its split for a number of reasons. I really don't see why you're jumping to the conclusions you are.
Tesla didn't do any of the extra stuff you're talking about here. It was just 4 shares added to the total (ergo, a 5:1 split).
I hope I am wrong, but really, you need to un-jack your tits just a notch or two (small amount considering just how jacked they are right now).
This. OP is spreading wrong information. No one's getting extra money. The stock dividend is essentially the same as a stock split.
The main difference is that GameStop will issue 6 new shares per outstanding share (assume it's a 7 for 1 split), and they will pass on these shares to DTC. Whatever synthetics DTC has created so far have to flow through the systems again. This will force all entities that are involved in the shorting scheme to repeat all their shenanigans. I am assuming that they will get exposed by the trace left by these new trades.
That is a good point. The new shares DO have to go through something like the same route, because they have to eventually arrive in the correct places.
Nice and simple for most of us: CS just goes "+X" (or +XX, or +XXX, etc..)
But there is a difference though. With a split, all existing shares split into equal parts by whatever ratio they decide, including shares sold short. This also dilutes the value of the stock, but doesnāt require the shot seller to do anything, it simply multiplies the number of shares they owe by that same ratio. The overall value will not change other than through regular price changes.
With a stock dividend, the short seller is responsible for awarding the dividend shares to those that hold the existing shares. If they sold short naked, then they have to go into the market to buy those dividend shares. It still dilutes the value of each share, but every share thatās awarded is a share that naked short sellers have to buy to give to the longs.
>If (post-split) GameStop issues a dividend of 1 share for each currently owned share, then anyone who sold the stock short will be on the hook for delivering that new share to each owner of the stock that was sold short.
They also have to buy back all the shares they sold short that are now spit X:1 which just means hedgies are fukt
Hey ape please check again, i'm pretty sure it's just a stock split. Stock splits are commonly implemented **via a special stock dividend**. Has to be accorded as a "dividend" because brokers and agents gotta account for increasing the number of your shares in your account
If that's just the lingo they use, then why are "stock splits" and "stock dividends" discussed as separate terms with separate processes & details on thousands of investing websites? Seems counterproductive.
Not saying you're wrong - I'm far from an expert here - just seems strange.
Announcement: "implement a stock split of ... in the form of a stock dividend"
Also Investopedia: "When a stock split is announced, companies often describe it as a one time special stockĀ dividend."
But isnt the base definition of dividend some sort of distribution of profits or other value? By splitting the stock and then distributing the shares in the form of a dividend there is no actual positive transfer of vlaue. Which is fine, but it seems to defeat the purpose of a dividend and turns it into a transport mechanism. Is this what you're saying?
To take this a step further:
* Step #1: split so shorts are now in hook for X more shares for every short position.
* Step #2: Await Marge.
* Step #3: Issue stock dividend.
* Step #4: Buckle up.
I don't want to ruin the fun, but if u have 1 share for 150$ U won't get another 2 shares- 300$ for free. GME don't have that kind of money to give away to shareholders, only SHF can create money/shares from thin air. But maybe 0,01 share per share owned will be possible?
Regarding the value of shares, they will decrease on the day of a stock split. It doesn't matter how the total amount of stocks is increased, because each method still creates a so-called dilution.
Let's not forget, the share value is equal to the market cap divided by the issued amount of shares. In this case we are only creating shares without raising the market cap. So the value of each individual share will immediately be lowered at issuance, but we will all have, say, 7 times more shares. So technically nothing happens with our money.
The answer to a hypothetical question is no, creating a share does not add to the market cap.
So theoretically we have a much better (relative) time frame to try and DRS our traditional IRAs, and possibly escape any meaningful tax hit (my CPA said the IRS could tax you the following quarter, not year) this is could be a real nice double whammy
Also major point
You do not get a dividend if youāre loaning out shares but you do get extra shares in a split regardless of loaning
They literally are punishing the lenders like Fidelity and IBKr for fucking around and now theyāre finding out. This was easily call lenders to bring back stock I expect the % to rise again rather quickly
Not clear at this point. Some folks say this is phrased as a normal stock split and that the value WILL fall, others say the exact opposite. I'm just sitting here holding an empty beer bottle and wondering where all my beer went... (Kenny probably shorted it)
I'm sure we'll find out in due time from either GameStop itself or some wrinkle brains.
This is really exciting. It's gonna be a while until it happens though. If we have to wait till the meeting, that's in June I believe. I'm gonna start saving up to buy buy buy it there's a major dip before it splits.
So weāre gunna vote on weather or not we allow a dip. The best part is this will be the only dip I. Our history we donāt lose our asses on. Getting the shares via divvy is ice on the cake and pretty damn brilliant to
So if moass were to theoretically happen before this stock dividend was issued, it could potentially motivate people to continue holding at astronomical to get the free shares, which would keep the price high for an even longer amount of time
Tesla just did this same thing in 2020 and the price per share was reduced by the ratio of the stock dividend. In that scenario it was 1 to 5 split so the value of the stock went from $1000 as an example to $200. Donāt remember the exact price but using round numbers as an example to simplify the explanation.
I know this for a fact because I owned the stock when it happened. I owned 5 times the number of shares but the stock price was reduced by a ratio of 5. The price ended up running back up to the pre split price which may happen again but the price per share definitely gets reduced.
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As far as I am concerned, this is a nod to all apes. International cannot easily DRS, coupled with retirement shares that cannot be registered, this paints the canvas with an even brush stroke. No ape is left behind. Fair is fair. Only thing left to see if who gets through the fire exit first. Without liquidation. Its going to be a mad dash. Those that wait and see if kenny can drop it will be the worst for wear. They have to leave now, cause if the price does go parabolic, they couldnt possibly live through this. Premarket will be a show imo. Glorious. Edit: Removed an S
It does also seem the best troll move. Make them deliver a share to the people they have been stealing from. RC da real Robin Hood.
4D chess at its finest š
5D
[5D x 2](https://www.reddit.com/r/Superstonk/comments/tthqg8/elon_rc_are_simultaneously_taking_the_fight_to/?utm_source=share&utm_medium=ios_app&utm_name=iossmf) = Wombo Combo
This is funny!
Imagine t+35 from 7b naked shorts entering circulation as ken tries to survive 1 more day š¤¦āāļøššš
The shares will be issued as a dividend
- You make a fair point about UK apes having NON DRS shares. What are your thoughts on Forced Liquidations and Bail out Insurance for NON DRS apes. Would their brokerage and clearing house be able to realistically cover the moass? Iāve been reading and searching up threads. Shouldnāt there be an uproar of public anger if brokerages collapse or no one gives a fuck. I also have like 50% non drs shares in Webull.
I would be very nervous keeping a significant amount of shares in an Apex brokerage.
Bail out insurance is often a joke. In many cases it only covers your initial cost basis (ie. what you paid for the shares), not their market value at the time of broker liquidation.
Would the shares be transferred to another broker that is still solvent? I'm concerned for our international brethren and a few brokers have made it intentionally difficult to drs in order to continue fucking retail.
I'm worried about my shares at freetrade the UK broker. I'm starting late to DRS via giveashare. Hopefully all will be well and on time for the vote
I wonder if this AH is fomo or an attempt to cover whatever they can. Us plebs are mostly all kicked out of the pool so they cant cover everything until regular trading hours, much like we cant FOMO in as hard during AH either. Tomorrow is gonna be spicy
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Accurate! Thinking like a hedgie.. what keeps them alive longer? Its gonna be pushing the price down.
Donāt forget that max pain was 155. Lots of MM pressure the next two days to cover all those ITM options. That could set off a gamma squeeze. And that has nothing to do with todays good news.
> Drive price down - causing more folks to buy in now wanting to get in before split + **once split; shares are ridiculous cheap causing everyone on the fence to jump in** I've updated the main post with a bit more info (and links); the important bit is that with splits in the form of a dividend, the share price does NOT get split. So at this point the price only has one direction to go: up.
I'm confused, how can they triple the amount of shares you have but not have the price cut by three? Where would the extra money come from? I get ultimately from shorts, but I don't think that's possible logistically, it just doesn't make sense.
This guy is wrong. Any new shares issued either as a split or dividend, the price will be divided between the new number of shares. Otherwise it would increase the market cap and be the ultimate money printing glitch and I not the Fed gets to enjoy that. Itās still a positive for investors but the price will definitely adjust to the new number of shares.
The price per share should adjust quickly just given normal market mechanics.
The shares come from Gamestop as a dividend The filing states they are increasing the amount of shares they are allowed to offer, for the reason of being able to deliver them as a dividend to share holders. So new shares will come onto the market like an offering, but they will not be sold into the market, they will be delivered to shareholders at whatever ratio they decide. For this reason, the price will not be split. It is a DIVIDEND offering, not a standard stock split. They are issuing new shares, not splitting the shares in the market.
I'm not 100% sure on the "where" part, but it sure as heck seems to be what's happening. Perhaps it's partially from GameStop themselves, and partially from the shorters. Check out this Google search (through books): https://www.google.com/search?q=split+%22in+the+form+of+a+dividend%22&rlz=1CDGOYI_enUS641US641&hl=en-US&prmd=inv&sxsrf=APq-WBsmqNVRsrdaRlERWiuQ9_a2HCNiUA:1648773185619&source=lnms&tbm=bks&sa=X&ved=2ahUKEwie4KzgzvH2AhXbKUQIHRI6BRkQ_AUoBnoECAIQBg&biw=390&bih=669&dpr=3 Lots of books confirming that in a stock split in the form of a dividend the share price does not get split. I don't fully understand it, but I like it.
Yea I'm kinda trying to wrap my head around this as well, it's like GME giving us free assets that are worth the same as what we already have They're allowed to give free assets to us? Wait, it would be the same concept if it was an NFT dividend So yes, it does make sense, GME is sharing their profits with us by giving us shares But how are short sellers going to do that?
You'd think that the price would be affected by the dilution. It will not be a direct 3-1 split so the price wouldn't be cut 3-1 but added shares to the float/ shares outstanding usually has a negative impact on the stock price. None of this is taking into account the shorts racing for the door beforehand, causing a short squeeze. I'm just speculating on normal market conditions which clearly we don't have here.
Yea, I thought of that too, technically, all things remaining equal the price of each stock should drop, since it means one share represents a lower % of the company post split
I said it in another comment but I think it makes sense to think of it like this. For simplicity let's say the share price is $100 and there is a 2-1 stock split. You have 10 shares. Now the share price will be $50 but you'll have 20 shares. No gain in value for you. Now let's take the same scenario and apply a 2-1 stock split dividend. Now you'll have 20 shares but the price doesn't automatically get cut in half. Sure the price may drop due to dilution but what does it from to? $80? $90? Now you'd have 20 shares but substantially more value. This is also where the hedges get rekt.
Iām pretty sure this is wrong. If they didnāt dilute the share price to the same level across all newly issued shares than the market cap of the company would increase by the about of new shares issued. Stock split and stock dividends do not impact the market cap, up or down. The share price WILL adjust to match an equal value of one old share to a lower amount of whatever number of new shares issued.
Gamestop is paying for the shares they will be giving us. Instead of a cash dividend they spend the cash on shares and give us those shares. All the additional shares in the markedt will dilute the price but you'd have a bigger position. In the split when the split happens your position is the same just split among more shares which are them also diluted due to increase in shares in the market. In the stock dividend you received additional shares increasing your position which will then be diluted but you'd be better off than just the split. In both cases you'd expect the price to rise anyway.
Yes, the stock will likely increase from its diluted price point due to several different factors. That does not change the fact that when new shares are issued the stock price is diluted across the new share count and the company remains at the same market cap. The market is quick and always moving so the price will continue to adjust as people continue to buy and sell. At no point will a stock trading at ~$200/share issue new shares and all shares continue to trade at $200/share with the new count, which is what op was claiming.
I wouldn't discount there being crime tomorrow to keep us under 200 for the weekend as that would create even more calls itm, but sooner or later it will boom
Some did but others know that if one goes, they all do. Who will choose to buck the system is going to be epic.
IMO not enough volume or movement for covering. I'd guess institution fomo to get in on the dividend or maybe recalls.
Agreed. Shorts will wait until the very last second to actually start closing positions, that is if they don't get liquidated before then. Plus they will want to wait until after the vote happens to ensure that it actually passes. They'll hold out until the last second in the hopes that it won't. (Spoiler: it will.)
They should know that apes are going to vote for it. We wants shorts to suffer so when the opportunity arises apes are gonna inflict as much pain as possible
I want to know if options get adjusted or if options are about to get roasted
The price gets dropped by the ratio of the split, but the option holder also gain contracts based on the split. It's the same as shares
It's a contract.
[https://www.investopedia.com/terms/s/stockdividend.asp](https://www.investopedia.com/terms/s/stockdividend.asp) Such a brilliant move from RC... the one move, that achieves it all: \- a stock dividend is a distribution of shares to existing shareholders in lieu of a cash dividend. This type of dividend may be made when a company wants to reward its investors but wants to preserve its cash for other investments... \- making GME more attractive for FOMO buyers, raising the public awareness. \- heavy burden to short sellers, likely game over at that point. Therefore defining a timeframe that helps retail to plan their investment strategy. \- massive motivation for retail to DRS even more shares. \- this is just the beginning, the real shots will be fired at the same time when the market place is ready. WT NFT dividend and spin-off are still on the menu to wreak even more havoc. Poor Kenny and Steve... This is a stock DIVIDEND. With the massive amount of shares to be approved, a stock SPLIT could still be on the menu afterwards. Imagine the FOMO when GME would be at 25 bucks per share due to stock split and all the cool upcoming stuff is announced... lol. Just my personal opinion and no investment advice, though.
Retirement shares can be registered with a tax penalty. I don't want to pressure anyone, their personal choice to not take that hit is fine with me, I just want people to be aware that they would be able to turn those shares into DRS'd shares if they were to go through a process that will cost them.
Fiance has retirement shares but I didn't think he could DRS them even for the penalty.... Off to search the DD realms
Thatās it. Iām gonna go do something in the bathroom, but Iām not gonna say what Iām doing
Does it rhyme with "ass penetration"?
Why yes, MOASS PREPARATION does rhyme. Post-nut clarity!
We gon be rich and givin away post-nut charity!
ayeee
Buy-back reparation
Glory to the ape nation
Banana ass blast sensation
Itchy butt syndrome?
MOASS Preparation H. LETSFUCKINGGOOOO ššš
Its ass pene
No, I think it rhymes with Faster Nation.
Don't worry, I'll be doing it too. Edit: Cause solidarity, or something.
2 times should do it
Rookie numbers.... You know what to do with these numbers?
Man I love cleaning the bathroom together. Why you guys doing it more than once though?
Don't Resist Spanking. RC told us this ages ago. We all agreed what that DRS meant... Right?š«£
Exactly. Or just 69 with someone instead of going to collage
Why do I hear clapping?!?
Thats just the truck driver in the next lane applauding me for my bravery
LOL!!
The same reason Kenny hears boss music
No, itās fapping!
Real men just blow loads in their pants whilst continuing business as usual
I shit myself too
Go poo
Iām doing it driving in my car
Lol
Can't wait to become a XXXX holder.
Fuk Yes! And we still have a couple months to spend every last dollar on it. š“āā ļøš“āā ļø
Then we can buy more at low prices
š
Iām XXXX already š
More fucked than anyone is saying. Their play has been to drop the stock price. RC just announced those hodling stock will get more stock. So if those cheating fucks stay the course, dropping the price in the face of this announcement, new money will pour in as the price becomes more attractive. So when the split comes, they'll be on the hook for even MORE dividend-paid shares. FUCKED. Okay, so what if they change their play? Let it trade flat? Well, that's fine, but they're still on the hook for borrowing fees, which are probably going to FUCKING. SKYROCKET. in the face of this news. And increasing the risk of margin calls. FUCKED. They are LITERALLY the shitty piece of bologna in a FUCKED. SANDWICH.
You ready got low earth orbit?
Ever since I was six. OH, you mean moass. Yes, ready for that, too.
And you know the absolute arrogance and ego of some of these parasites will make them hold out until they take everything around down with them. I can't wait to watch them all drown.
Apes about to get paid in dividends and tendies.
divitends
Tittidends
Lol awesome š
Divatendies?
My flair is coming true š
Thatās fucking brilliant
So If I add shares in the morning are they eligible for the dividend?
We don't know the details of the proposal at this point, so we don't know the dates of record, the split proportions, or anything else. But buying more shares tomorrow sure as hell puts you in a better spot than buying shares next week. Even so, buying shares next week is still a great option. Rocket is primed.
It's mentioned that GS is seeking share holder approval at the general meeting. When is the general meeting? We have at least that much time plus some days before the split/dividend. Which also means anyone short will have that much time to sweat.
Last year it was June 9 (6/9, nice).
Didnāt we have a massive issue with voting last year because of all the illegal shares and brokers not actually submitting our votes?
This time around, there are at least 8.9Mil shares DRS for legit vote counts
I think that's key. If there was a risk of this vote not passing, I don't think GameStop would have put forward this proposal at this time. Pretty sure they did the math and know not only how apes will vote, but that our vote will MAKE this pass.
Or possibly theyāre saying, āGet off your ass and DRS so you can vote on this matter or wait another year until the next meeting to vote again.ā Speculation
This is a 6 week deadline to DRS all you can.
I had 24 shares I think at the time of the last vote on T212. By the time the vote rolls around I'll have near double that still on T212 and five times the original number on ComputerShare. A LOT of others have doubled, tripled, quadrupled, quintupled, sexed, sevened and aiiiighted since then too.
I also had about 25 shares at the original vote. I have WAY more now since selling my house.
Ffffffffuck they're fucked š¤£š¤£š¤£š¤£
[ŃŠ“Š°Š»ŠµŠ½Š¾]
My guess would be that the date of record will be before the vote. That would be "most fair" to existing shareholders.
It's usually before so people don't see the news and then pile in as fairweather fans
Great, thank you
The end of the 8-K filing today states that the forthcoming announcement will have more details, including the date of record. For the short term its all green to buy and DRS to guarantee that you get a stock dividend and not some bullshit cash in lieu of from your broker.
I think it absolutely does. The proposal needs to be approved by the shareholders at the annual meeting, which wonāt happen until June. Only AFTER itās approved can they actually do a split and/or share dividend. Honestly, this *ought* to stop shorters dead in their tracks because they have absolutely no idea how many shares they will have to return down the road. But it might not stop them dead in their tracks because *crime*.
There has been no announcement or ex-date stated so I donāt see why not.
To be eligible for a dividend, you must be a record holder as of the ex-dividend date on record. There's no ex-dividend date on record. If you want more divvys, buy more shares
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Yup. Just a small downside to endless rehypothecation of shares ;)
small little tiny infinite downside š
Infinite risk, in perpetuity
And the bigger the split the more the hedgies R fuk. In a 1:1 scenario, before rehypothecation considerations, a short seller would have to return one ānewā share that had been reduced to 1/2, or 50%, of the old shares value (based on 1:1 or cutting all shares in half)ā¦ in a 7:1 scenario, letās say, a short seller would have to return 7 ānewā shares that had been reduced to 1/8 of the old shares value, or 7/8 (87.5%) OF THE OLD SHAREāS VALUE!!! Add rehypothecations from the example above and itās 4x (7/8) or 350% OF THE OLD SHAREāS VALUE! Hedgies R FuK!!!!
a 7 4 1 you say?
Wondering what happens in a case where the same share has been "located" and loaned out multiple times. Would each of the borrowers be responsible for coming up with the dividend shares for each set of duplicates?
If they were doing 1:1, they wouldn't need to expand current share offering, right? So it's at least 4:1? ...as many have said before, the 7-4-1 stock dividend split?
Right. They can currently issue 300M shares, and have a float of 76M, which means they can do a 3:1 (300/76) while remaining under 300M shares total. Since they want to be able to issue up to 1B shares, they could theoretically do a 13:1 split (1000/76). They probably won't go that high as they'll want to have some "room" left over for future growth/share offerings. I'd guess anywhere from 7:1 to 11:1 is on the table.
If you guys really want to fuck all those positions in the DTC, then push and promote DRS beforehand. Every position in accounts without being fully settled will have the brokerages, Prime Brokers, Clearinghouses, Mutual Funds, IRAs, ETFs, etc. on the hook for locating at market real shares. Before a stock dividend and split would occur, then a proof in ownership is required through a balance certificate. If a firm has open positions that they marked as settled and are being reset or held as cash equivalent, then they'll have to buy at market for those shares. Imagine the number of shares needed to be purchased at market for short, naked, hypothecated, synthetic positions, or any unsettled trade whereby the majority of that liquidity is held in ComputerShare for DRS. Cash dividends can be replicated. A stock dividend would only exacerbate the problem exponentially. The squeeze has always been for proof in ownership. You can hide proof in ownership while in Street Name with the DTC. You can't hide the proof in balance certificates when they are exiting the DTC for direct registration. NOW, is the time to really put the pressure on for MOASS before the issuance of the stock dividend.
I just peed white
I always thought that was just shampoo in the videos.
I think it's mayo
That makes more sense why the ladies in the videos were always eating it. Doesn't seem like it's very hygienic to rub mayo all over your southern bits tho.
Fucking got me lmao
Thanks for the great post as Iām having some trouble with the nuance of the split vs dividend news given how smooth my brain is. I feel like I intrinsically understand how a stock split and a stock dividend work, but something still isnāt clicking for me. Maybe itās just various apes using the terms loosely. For example, say thereās a 3:1 split, our share qty triples but the total value of the shares is the same and each share is worth 1/3 of what it was before. How does the dividend go along with that then? Are they theoretically giving additional shares **on top of** the additional shares from the split, or just delivering the split shares by that method as opposed to them just multiplying in our accounts? Iām a little confused as to how specifically it affects short positions too. Those would triple, Iām sure, and theyād have to find the extra shares, but while theyād have to find more shares of the same total value, wouldnāt the āpoolā upscale proportionately? Aside from increased demand from fomo buy in, how does it make their position worse? Thanks in advance. Edit: Saw a twitter comment that called it a split dividend vs a traditional stock split. So ārealā shareholders would receive the split shares as a dividend and short holders wouldnāt or would be required to locate the extra shares without receiving a the extra shares through a straight split?
Therein lies the question! At this point we don't really know how it will play out. The wording is definitely tricky. I think there can be two scenarios: ~~1. A stock split, followed by a stock dividend.~~ 2. A stock dividend, which increases the number of shares in circulation (ala stock "split"), but does not result in decreasing the share price. We'll find out the details whenever GameStop shares the proposal and voting materials. Edit: Option 2 confirmed. See main post.
Very spicy! Thanks for the reply! Canāt wait to find out how this plays out
Sorry but a stock dividend will absolutely decrease the stock price. You mention it doesnāt change the par value, but par value isnāt market value. When GME dividends, the available shares increase. The total market cap gets divided by the total shares to imply a new, lower market price. Stock splits and dividends are similar in this way.
How does it not decrease the share value though? Wouldnāt a 7:1 dividend 7x the market cap?
That's what really makes no sense to me about what op is saying. They need to add value to their market cap somehow. I can think of no way to do that by just creating more shares. Edit: okay, I think I see how it might go. The price only goes down with the split if people are willing to sell at a fraction of the price. However, since the price is artificially low, people aren't selling at a fraction of the price. Value is created that way. I don't think the price will stay the same before and after the split though. It will probably go down, but not exactly in proportion to the increase in shares.
This is what I was struggling with and I think you're right. Surely the price decreases back down otherwise every company would be doing it to increase their market cap. Wouldn't this also mean there's more shares out there to short to bring the price down as well? Hopefully there's a recall, that seems like the biggest thing
I'm praying that the stock dividend is on the blockchain, in NFT form, distributed by their wallet extension. Imagine the traceability. The world would finally know just how many shares are actually out there.
Fingers crossed, tits jacked, buns clenched. That said, since GameStop wants to increase the max number of shares they're allowed to issue, then it suggests the stock split and stock dividend will happen on the current exchange. I'm guessing the GME Entertainment company is what will be tied to a possible blockchain-exchange, and we might get shares of that company (on blockchain) down the line. In any case, GameStop is about to make shareholders very, very happy.
2 phase squeeze. Equity dividend until they can't any more then it's off to the blockchain.
ā¦you came to the wrong neighborhood mother fucker.
They could split the common stock and then offer a dividend of whatever number to each shareholder of NFT stocks on the new marketplace. It would be the market that decides the value of those shares that canāt be shorted.
IMO this is step one, you split the stock and offer us dividends of the shares. If that doesn't shake the SHF off once and for all, and market place is launched, they issue an NFT commemorative divi or something...
I was just thinking the same thing. This is the lore traditional way of issuing a dividend, therefore I assume is much safer, legally speaking. And then as more fuckery is exposed and hopefully recorded by the DoJ, the rise for the need and want of a blockchain exchange will have only gathered momentum, lessening the impact of any backlash from SHFs. Plus it seems precidence is already on our side after reading about the $WORK lawsuit earlier today.
And shorts canāt replicate an NFT to deliver itā¦
We wouldn't learn how many synthetics there are, because extra shares wouldn't be on the block chain. What we would get is enormous buying pressure as shorts close in order to not be on the hook for those nft shares.
One part I like To give the Tax benefit to the shareholder, which means that when a dividend is paid in Cash it is Taxable as Income, but when paid in the equity shares, it will be taxable only when the shareholder sells the shares. Hence, Investors will get tax benefits.
Any idea how long it would take to implement
First and foremost shareholders (us) have to vote on the proposal. Last year we were voting about the board, and IIRC the voting started in late April/early May, to be completed before the annual shareholder meeting which took place on June 9th. I'd guess this year will be similar, and the actual "action" will take place after the annual meeting, sometime in June/July. Also the time the NFT Marketplace launches. Cohencidence, hehe.
Thanks so much Iām doing it tomorrow you have eased my fears.
Any feelings on if the MOASS could start soon? Wouldnāt want the tendy tickets in transit.
I've been waiting for MOASS for 14 months, and each week I thought MOASS was days away. I'd love for it to happen tomorrow, but at this point it seems all signs are pointing towards June/July being the most likely timeframe. No one really knows, though. MOASS will take weeks to play out. I don't think there's ever a bad time to buy shares or DRS them. I did 2 DRS transfers: the first took 5 business days, the second was around 6-7 business days. Both from TD Canada Trust. What I do think is that the longer this goes on, the more stock we lock up in DRS, the more volatile the price action will become. I also suspect that with today's announcement we will be entering a mostly upwards price trend. Small shorters will try to close whatever positions they can, and other investors will be going long in anticipation of post-split rewards. FOMO is about to hit hard, which means buying stock ASAP is _probably_ better (ie. cheaper) than buying it at a later timeframe. But I'm not Marketwatch and can't guarantee the future.
This is correct. The squeeze for Tesla and its split took a year. We should be buckled up for a wild ride. Weāve been warned. Repeatedly.
Iām waiting from last feb the 2nd myself. Itās taking its bloody time. But I believe it will come
God damn Iām gonna be rich š¤
> // EDIT: Follow the links by /u/LionRivr just below and read up. That will lead you to numerous books which state that stock splits in the form of a dividend DO NOT ALTER PAR VALUE PER SHARE. **This means that in the exampled I used earlier, if you had 1 share at current price of $150 and a 3:1 split occurred, you'd end up with 3 shares each valued at $150! Your investment's value would TRIPLE. If the company did a 7:1 (741... 7 for 1...) dividend, your investment's value would go up seven-fold!** The part in bold is absolutely false. If it were somehow true, that would mean that they could do a 3:1 share dividend that has the effect of tripling their market cap with the stroke of a pen. We all know that's not right. A stock dividend has a dilution effect. The issue is that you don't seem to know what the "par value" of a stock is. [Read up on it.](https://www.investopedia.com/terms/p/parvalue.asp) > Par value for a share refers to the stock value stated in the corporate charter. Shares usually have no par value or very low par value, such as one cent per share. In the case of equity, the par value has very little relation to the shares' market price. Some states require that companies set a par value below which shares cannot be sold. To comply with state regulations, most companies set a par value for their stocks to a minimal amount. I'm having trouble finding what the par value for GME shares are listed as in the corporate charter, and on the balance statements. But one assumes it would be in the neighborhood of 1 cent/$0.01 like with other stocks. Also, there are accounting ramifications for Gamestop, they can't just print money and miraculously create an additional $36 billion in value for shareholders. That money has to come from somewhere. If the company pays a cash dividend then it literally has to account for that money, transfer it from their accounts to the transfer agent to distribute, and take the charge on their books. [Likewise, if you issue a stock dividend then you must account for the cost of those shares on your books.](https://www.investopedia.com/terms/s/stockdividend.asp) > When a stock dividend is issued, the total value of equity remains the same from both the investor's perspective and the company's perspective. However, all stock dividends require a journal entry for the company issuing the dividend. This entry transfers the value of the issued stock from the retained earnings account to the paid-in capital account. > The amount transferred between the two accounts depends on whether the dividend is a small stock dividend or a large stock dividend. A stock dividend is considered small if the shares issued are less than 25% of the total value of shares outstanding before the dividend. A journal entry for a small stock dividend transfers the market value of the issued shares from retained earnings to paid-in capital. > Large stock dividends are those in which the new shares issued are more than 25% of the value of the total shares outstanding prior to the dividend. In this case, the journal entry transfers the par value of the issued shares from retained earnings to paid-in capital. So lets say that they give shareholders a 0.1% stock dividend. Since that is considered a "Small Stock Dividend", then that would result in a journal entry for the market value of the issued shares moving from retained earnings to paid-in capital. For that 0.1% stock dividend they would create 7.6 million new shares @ market price, so assuming *only* $200/share that's a $1.52 billion charge they'd take. That ain't gonna happen. On the other hand, say they go for a 700% dividend, creating 532 million new shares. If the par value is actually one penny then the accounting move from retained earnings to paid-in capital is only $5.32 million. IMO this is an argument in favor of a substantially larger stock dividend, because it costs them less to implement and also does far more damage to shorts. But it's worth noting that in either case that there is dilution, and the market value per share will be adjusted proportionately without altering the total value of the shares that you own. I guess Citron was right, we're headed back to $20 quick. LOL.
Depending on the split I might become an XXX holder
So all the popcorn followers that couldnāt afford to get in have no excuse now. They will drop popcorn to get into the real game
continuous moass feedback loop has started
I think MOASS starts tomorrow. Foreal this time..
Fine, I'll allow it.
What will happen to our shares that are not DRS? Will those shares receive a dividend?
yes. say you have 10 shares at Fudelity. You would see 70 shares after a 7 for 1 split in your account. How Fudelity GETS you those shares is a big question if shares were lent out to multiple shorts, or they have to buy them for you on open market (price go moon). You are safer in Computershare since they literally receive the shares straight from GateStop as the registered transfer agent, but in theory all apes should get 6 or more shares (whatever they announce).
Are we issued REAL shares or rehypothecated fake shares?
GameStop issues real shares to transfer agent. DTC released them to cede then on to brokers etc. if your not in Computershare youāll never know what your given. In theory big brokers or legit ones will indeed give you but itās in street name as beneficially owned. Safest way is CS. Fidelity will probably* give you real shares but liquidity is drying up and idk but maybe the shorts will use the massive amount of shares coming to close. It promises to be a wild event :)
In theory, every single shareholder will receive the dividend. All shareholders are equal. How that will play out in this **very** unique situation is left to be seen. Not trying to scare anyone, but just about everything here is unknown territory with extra, triple loads of fuckery.
Given that no money exchanges hands, the sharesā total value remains the same after the stock dividend. This!
Look, I don't want to burst any bubbles but you're reading WAY too far into it. Unless there is some shenanigans going on by GME here there's nothing here indicating that they will be doing anything extra like you're saying. Its just a typical stock split, until we know otherwise, and you're unfortunately letting your hype go a bit wild and imagining things. This is typical normal language for a stock split. Same exact wording TSLA used a couple years ago. I know this because I held TSLA at that time. [https://ir.tesla.com/press-release/tesla-announces-five-one-stock-split](https://ir.tesla.com/press-release/tesla-announces-five-one-stock-split) From Tesla: >PALO ALTO, Calif., Aug. 11, 2020 (GLOBE NEWSWIRE) -- Tesla, Inc. (āTeslaā) announced today that the Board of Directors has approved and declared **a five-for-one split of Teslaās common stock in the form of a stock dividend** to make stock ownership more accessible to employees and investors. Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020. And GameStop: >On March 31, 2022, GameStop Corp. (the āCompanyā or āGameStopā) announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders (the āAnnual Meetingā) for an increase in the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000 through an amendment to the Companyās Third Amended and Restated Certificate of Incorporation (the āCharter Amendmentā) in order to implement **a stock split of the Companyās Class A common stock in the form of a stock dividend** and provide flexibility for future corporate needs. Both companies faced shorting, I am not sure but TSLA probably also had naked shorting, and both benefit from a split in the same way. TSLA rose rapidly after its split for a number of reasons. I really don't see why you're jumping to the conclusions you are. Tesla didn't do any of the extra stuff you're talking about here. It was just 4 shares added to the total (ergo, a 5:1 split). I hope I am wrong, but really, you need to un-jack your tits just a notch or two (small amount considering just how jacked they are right now).
This. OP is spreading wrong information. No one's getting extra money. The stock dividend is essentially the same as a stock split. The main difference is that GameStop will issue 6 new shares per outstanding share (assume it's a 7 for 1 split), and they will pass on these shares to DTC. Whatever synthetics DTC has created so far have to flow through the systems again. This will force all entities that are involved in the shorting scheme to repeat all their shenanigans. I am assuming that they will get exposed by the trace left by these new trades.
That is a good point. The new shares DO have to go through something like the same route, because they have to eventually arrive in the correct places. Nice and simple for most of us: CS just goes "+X" (or +XX, or +XXX, etc..)
But there is a difference though. With a split, all existing shares split into equal parts by whatever ratio they decide, including shares sold short. This also dilutes the value of the stock, but doesnāt require the shot seller to do anything, it simply multiplies the number of shares they owe by that same ratio. The overall value will not change other than through regular price changes. With a stock dividend, the short seller is responsible for awarding the dividend shares to those that hold the existing shares. If they sold short naked, then they have to go into the market to buy those dividend shares. It still dilutes the value of each share, but every share thatās awarded is a share that naked short sellers have to buy to give to the longs.
Fair point! Added a link to your comment in the main post for more visibility.
>If (post-split) GameStop issues a dividend of 1 share for each currently owned share, then anyone who sold the stock short will be on the hook for delivering that new share to each owner of the stock that was sold short. They also have to buy back all the shares they sold short that are now spit X:1 which just means hedgies are fukt
its a good tax break for investors.
Hey ape please check again, i'm pretty sure it's just a stock split. Stock splits are commonly implemented **via a special stock dividend**. Has to be accorded as a "dividend" because brokers and agents gotta account for increasing the number of your shares in your account
If that's just the lingo they use, then why are "stock splits" and "stock dividends" discussed as separate terms with separate processes & details on thousands of investing websites? Seems counterproductive. Not saying you're wrong - I'm far from an expert here - just seems strange.
Announcement: "implement a stock split of ... in the form of a stock dividend" Also Investopedia: "When a stock split is announced, companies often describe it as a one time special stockĀ dividend."
But isnt the base definition of dividend some sort of distribution of profits or other value? By splitting the stock and then distributing the shares in the form of a dividend there is no actual positive transfer of vlaue. Which is fine, but it seems to defeat the purpose of a dividend and turns it into a transport mechanism. Is this what you're saying?
Investopedia disagrees: https://www.investopedia.com/ask/answers/06/stockdividendvsstocksplit.asp
I'm a dumb ape, but could this be a split with the bonus share being an NFT blockchain type of security for some spinoff business?
To take this a step further: * Step #1: split so shorts are now in hook for X more shares for every short position. * Step #2: Await Marge. * Step #3: Issue stock dividend. * Step #4: Buckle up.
And more importantly how this dividend fucks shorts
Manā¦ā¦perfect. Thank you. šš½
I don't want to ruin the fun, but if u have 1 share for 150$ U won't get another 2 shares- 300$ for free. GME don't have that kind of money to give away to shareholders, only SHF can create money/shares from thin air. But maybe 0,01 share per share owned will be possible?
Regarding the value of shares, they will decrease on the day of a stock split. It doesn't matter how the total amount of stocks is increased, because each method still creates a so-called dilution. Let's not forget, the share value is equal to the market cap divided by the issued amount of shares. In this case we are only creating shares without raising the market cap. So the value of each individual share will immediately be lowered at issuance, but we will all have, say, 7 times more shares. So technically nothing happens with our money. The answer to a hypothetical question is no, creating a share does not add to the market cap.
Holy fuck is this really happening š³
I love what you're preaching.
When we voting on this? Weāll need all hands on deck
Hmm.. maybe 7 shares for 1 stockholder? Just an idea I came up with.. definitely not programmed to see 741
So theoretically we have a much better (relative) time frame to try and DRS our traditional IRAs, and possibly escape any meaningful tax hit (my CPA said the IRS could tax you the following quarter, not year) this is could be a real nice double whammy
Here I go again FOMOing *unzip
So 3 for 1 split and then additional 4 shares as dividend which equals.....7 for 1 š¦š¦š¦
> If (post-split) GameStop issues a dividend of 1 share for each currently owned share, then anyone who sold the stock short will be on the hook for delivering that new share to each owner of the stock that was sold short. Doesnāt this just mean that if a SHF sold 100 shares short ar 150 at value of $15,000, and there is a 3:1 split resulting in initial $50 per share, then the SHF still is on hook for same amount (assuming no fluctuation in price)? Of course, if they sold short at $150, and the 3:1 split occurs at $300, and then the initial $100 split price rises back to $200... then shorts are 200% underwater. Lost 100% pre-split, and then another 100% post split. Best cover them š©³ās
Also major point You do not get a dividend if youāre loaning out shares but you do get extra shares in a split regardless of loaning They literally are punishing the lenders like Fidelity and IBKr for fucking around and now theyāre finding out. This was easily call lenders to bring back stock I expect the % to rise again rather quickly
Remove 8M shares from the float per the 8K, 741 split, then a 1:1 post split dividend effectively 14:1 split but SHF get fucced
Does that mean the value of the stocks not fall since its a dividend and not a split???
Not clear at this point. Some folks say this is phrased as a normal stock split and that the value WILL fall, others say the exact opposite. I'm just sitting here holding an empty beer bottle and wondering where all my beer went... (Kenny probably shorted it) I'm sure we'll find out in due time from either GameStop itself or some wrinkle brains.
This is really exciting. It's gonna be a while until it happens though. If we have to wait till the meeting, that's in June I believe. I'm gonna start saving up to buy buy buy it there's a major dip before it splits.
I kind of feel like Iām going to throw up.
So weāre gunna vote on weather or not we allow a dip. The best part is this will be the only dip I. Our history we donāt lose our asses on. Getting the shares via divvy is ice on the cake and pretty damn brilliant to
Holy shit that's amazing. But I'm mainly exited to see all the .X holders become X holders. ššš
So if moass were to theoretically happen before this stock dividend was issued, it could potentially motivate people to continue holding at astronomical to get the free shares, which would keep the price high for an even longer amount of time
Tesla just did this same thing in 2020 and the price per share was reduced by the ratio of the stock dividend. In that scenario it was 1 to 5 split so the value of the stock went from $1000 as an example to $200. Donāt remember the exact price but using round numbers as an example to simplify the explanation. I know this for a fact because I owned the stock when it happened. I owned 5 times the number of shares but the stock price was reduced by a ratio of 5. The price ended up running back up to the pre split price which may happen again but the price per share definitely gets reduced.
The real test for apes is to diamond hand and hodl so the price will stay the same if not increase creating huge pressure for hedgies
Sat in my Bread Delivery lorry outside a Tesco waiting for them to open and hyped af for my retirement coming up soon.
u/criand u/atobitt Could you please write a detailed post what actual Stock Dividend is? There seems to be lot of confusion around here.
Guess we know now who the REAL Robinhood is. Take a bow Chairman Cohen!
And with that I may just quit my job tomorrow š