Naked Brand Group Inc (NAKD)

[E-E]

Direct Registration System (DRS) FAQ

https://www.reddit.com/r/NAKDstock/comments/qlove5/how_to_drs_your_shares_official_rnakdstock_guide/?utm_source=share&utm_medium=web2x&context=3

Q: Why DRS?

A: Registering shares in your name means that those shares are yours. They cannot be loaned for shorting or dark pool activity. They cannot be force-sold by brokers as eToro did with fractional shares of NAKD in February.

Q: Doesn't my broker already do that?

A: No, your broker holds shares for you in "street name." Meaning essentially you have the right to a particular holding, but not that there is an equivalent of a paper stock somewhere with your name on it.

Q: What if I turn off share lending, will that---

A: No; that is primarily for tax purposes. That is not the same as putting a stock under lock and saying it's mine no one else can have it.

Q: Do all brokers DRS?

A: In the US, almost entirely yes, and in many countries elsewhere (with InteractiveBrokers (IBKR), basically the whole world). Unfortunately some boutique online brokers such as Robinhood, eToro, Trading212, and IG do not allow DRSing. In these cases, it is recommended to transfer out to another broker that does DRS. (That is, if transfers are allowed, such as on Robinhood for a $75 fee; this is not possible for 'omnibus account' brokers such as eToro.) In cases such as with eToro or T212 where DRS+transfer is impossible it is recommended to start buying NAKD on a new IBKR account (or similar) and to DRS those shares while hodling the original NAKD investment (keep in mind these no-DRS, no-transfer brokers are more likely to force-sell in a MOASS event).