News for hackers. Stuff that matters.

A comment on Discord bans r/WallStreetBets server, subreddit went private for a while. Parent comment

Re:Discord bans r/WallStreetBets server, subreddit went priv... by dragontamer on Thursday January 28, 2021 @09:20AM (#25942074)
Those brokerage accounts loan the shares out and collect some interest %%% while waiting.

The shares don't have your name on it. It has like Robinhood's name on it, holding on behalf of the customer.

[ Parent | on HN ]
Re:Discord bans r/WallStreetBets server, subreddit went priv... by esrauch on Thursday January 28, 2021 @02:59PM (#25948143)
I was completely unaware this was a thing: that means there can be a "run on the bank" if all of the customers wanted to sell on a short time period, and they don't actually have the shares to cover the sales?
[ Parent | on HN ]