AMC CEO Adam Aron said during Q3 announcements that by using a DRS, or Direct Registration System, investors could prevent the company stock from being shorted.
“If you direct register your shares, they cannot be shorted”, said the CEO.
Now investors who were once skeptical on DRS suggest this could be the only way to trigger a massive short squeeze event.
Institutions have been able to suppress AMC’s share price through overleveraged shorting in the market.
And unfortunately for retail investors, the real demand for the stock has been hidden for far too long.
Is DRS the strategy to beating Wall Street again?
Let’s discuss it.
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What is a DRS?
The Direct Registration System, or DRS, is a system for book-entry ownership.
DRS offers investors and shareholders an alternative from receiving a physical certificate, by allowing the shares to be recorded in the books electronically.
The way AMC shareholders can transfer their shares to a DRS is by contacting their brokers and requesting the transfer directly.
Shares registered through DRS cannot be lent to short-sellers by brokerage firms.
DRS might also be able to expose the fraud that occurs behind the doors of market makers and other financial institutions.
Naked shorting has been a real problem in the finance sector and unfortunately the SEC has not tackled it head on.
It’s very possible DRS kills two birds with one stone.
But I’d love to hear your thoughts on the segment.
Should AMC shareholders DRS their shares?
And do you think it will make a difference?
Leave your thoughts in the comment section below.
Latest AMC Stock News
AMC beat earnings expectations for Q3 of 2022, ending the quarter with just under $900 million in liquidity.
The company seated more than 53 million guests in Q3, a 33% increase from Q3 of 2021.
Zoom and AMC are partnering up to arm the movie theatre chain with communication services across movie theatres in 17 U.S. states.
The company also plans to issue AMC credit cards by the early 2023.
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Not true. Why would they want to take away the sell button. They want us to sell. They will try to take away the buy button and not the sell button
Wow! The comments here are truly rude & not dry all professional.
Yup DRS your shares!! Then when the stock halts on the way up, you won’t be able to sell your shares until the next trading day! People wake up! DRS is a way to lock up your shares so they legally take away the sell button… go look at computer share’s terms and conditions!
They are not in your brokage to trade. Also, one can sell fairly quickly. No need to panic. The Days to cover are about 5 or 6 days so there is plenty of time to sell
There are alot of Bots on here commenting. One thing they keep spamming is Adam Aaron FUD. That is a tactic to make you paperhand during moass. Also if you go to computershares terms. If you DRS you can NOT sell shares if there is a halt until the next trading day so think about that. During a squeeze there are halts every single day multiple halts. This is why you see so many bots spam DSR and AA FUD. Do not take my word for it go to computer share and read it for yourself.
GME has DRSd for almost a year. Hasn’t done a thing to cause a squeeze so far. Most recently it was hoped that at $130 it would squeeze. As usual that price was suppressed. So I remain skeptical.
APE is what killed AMC. AA just adds more APE. They will eventually become AMC outright. Effectively finding yet another way to dilute.
We never got to vote on it. They were shorted to heII within 2 weeks.
I hope AA and his gang are enjoying the bonuses. After we saved thier butts 2 years ago. Oh yeah but we get free popcorn. Gee thanks.
If your shares are registered with DRS are they still in your brokerage account and available to trade?
Would hate to not have the ability to sell immediately if the time came.
Anyone know the answer?
To the moon! 🌙🌒💫🌓🌘💫🌘
Frank you just made my day, ty!!!
Such a SCAM …he prevented the squeeze and enriched himself SO glad I sold my 16000 shares at 70 and making a fortune on GTII which had NO OPTION NO HALTS NO ADAM AARON
You’re a scam
You don’t if it would have squeezed.or.not it’s all speculation the HF would of done whatever they could even without ape to keep the price down As far as selling at 70 good for u when it goes past that pls don’t come out here n say well yea I bought AMC at 5 n then jumped on again n sold at a 100 u sound ridiculous
Your making a boat load of money on GTII the stock that keeps going down 30 cents everyday because too many people opened there mouth about that one as well do the HF decided to short that too. Your not making shit. The only win here is let the market crash the economy crash millions.of people lose there retirement n there money millions of people lose there jobs n never go back into the market then the HF can’t steal from us anymore only themselves hence no more illegal trading no more markets no more small dic.ken Griffin Done n
Still waiting for GTII to squeeze. When it does not what will be your excuse??
Fuck of, AA will only more money.
Let’s start a discussion! Leave your thoughts below.