Re:Counterfeiting Stock – Explaining illegal naked shorting ...
by Chris2048 on Monday February 01, 2021 @12:44PM
(#25991029)
> When I purchase a stock, I do it in the express belief that I will get a physical share of that company
When you put money in a bank, acquiring interest, you no longer control that money, the bank is free to invest it, though obligated to return it. This is part of your agreement with the bank.
When a broker buys stock on you behalf, there are often similar arrangements in the T&Cs. Your stocks therefor, cannot be borrowed, or sold, without your consent; but you need to read the terms to see what you are consenting to.
When you put money in a bank, acquiring interest, you no longer control that money, the bank is free to invest it, though obligated to return it. This is part of your agreement with the bank.
When a broker buys stock on you behalf, there are often similar arrangements in the T&Cs. Your stocks therefor, cannot be borrowed, or sold, without your consent; but you need to read the terms to see what you are consenting to.