In this tweet from @TheRoaringKitty [0], a pizza is repeatedly sliced into thinner and thinner slices. This is a reference to the reply from New York Federal Reserve to the Clearing and Legal Certainty Group from the European Commission [1].

When you buy stock, you don't actually get stock –– just a security entitlement. This is a pro-rata share of the stock held by the intermediary. When other shareholders DRS, then their security entitlements at the intermediary become real stock at the transfer agent.

So the intermediary is left with less and less stock, and your pro rata share gets smaller and smaller. Like the thinner and thinner slices of pizza.

[0] https://twitter.com/TheRoaringKitty/status/1790770363627921776 [1] https://archive.org/details/ec-clearing-questionnaire