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I have found this Reddit post, which states that about 25% of Gamestops Free Float (yeah this again) has been directly registered by retail share holders.

The post (and the community as a whole) make it sound like this is significant and has never happened before. Is it actually true that this has never happened before? (Perhaps only considering bigger-ish companies) And even if that is true is that actually significant? As far as I understand the premise of why Reddit thinks this is significant is that with Shares held by Brokers these Brokers never actually buy the shares (why would they not?) or they buy them and still lent them to other entities and thus directly registering the shares is the only way to actually own them.

The benefit as far as I could gather is that then those shares can no longer be lent out to companies who want to short the underlying security, meaning this would stop some selling pressure induced by those short sales. It would also apparently uncover some sort of naked shorting in the market if it would be possible to directly register all (or more than) the shares the company has issued, tho this is a bit too deep into the conspiracy theory world for my liking.

So far the only sources I can find on the matter are inside the same Reddit Forum, meaning I am not entirely certain how impartial and reliable those actually are

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  • Is it true that street name shares can be lent without the beneficial owners involvement? I'm not sure.
    – littleadv
    Commented Mar 22, 2022 at 17:15
  • @littleadv I think the consensus (on Reddit) is that most brokers have some sort of buried setting that you have to change for them to not lent those shares out. Fidelity does consistently have GME shares ready to be lent out daily. There also was a but where they had like 13 million at one point.
    – SirHawrk
    Commented Mar 22, 2022 at 17:29
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    Fidelity is a large institutional investor, they may be lending their own shares (shares they manage, not just hold in street name).
    – littleadv
    Commented Mar 22, 2022 at 17:32
  • Entirely true I am just retelling things I read on Reddit because I am doubtful that these are true but I can't find any information about it
    – SirHawrk
    Commented Mar 22, 2022 at 17:37

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