Pedro: IMO none of the three scenarios you posted are correct. Urbie wanted to show his appreciation to shareholders who attended or worked at the races by giving them some free shares. They created a list for shareholders to sign up. Urbie said if they knew of any needy people they could add their names too. The list is not of all needy people. WillyWizard is on the list. Do you consider him needy? The share recipients can do whatever they want with the stock -- keep it, give it away, destroy it, or whatever. There is no obligation for them to give it to folks who you or I would consider really needy.
As for how the distribution will work, I suggest you contact Glenn or Urbie. Urbie can distribute his own holdings to whomever and however he wants, but frankly it appears he may be self-dealing here. IMO that should be more of a concern.
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"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
-- Warren Buffett
