Re:GameStop Investors Who Bet Big–and Lost Big
by newacct583 on Tuesday February 16, 2021 @12:32PM
(#26156394)
I don't think that works. I'm not an SEC regulator, but I don't believe there's any requirement that the brokerage hold real shares for the full total of all outstanding sell orders[1], or to logically segregate the holdings of different customers.
If someone comes by and tries to buy that million dollar share, the brokerage is merely required to honor the trade with a share they have from anywhere, including one purchased from the market or held by a different customer.
Again, this whole notion of "Hold the Line" is just not how trading works.
[1] I mean, that's just trivially violated by a perfectly normal short sale by definition.
If someone comes by and tries to buy that million dollar share, the brokerage is merely required to honor the trade with a share they have from anywhere, including one purchased from the market or held by a different customer.
Again, this whole notion of "Hold the Line" is just not how trading works.
[1] I mean, that's just trivially violated by a perfectly normal short sale by definition.