When I buy and sell stocks, I do it through a brokerage, so the stocks aren’t owned by me directly. This creates a single point of failure for me if the brokerage goes under for some reason. I can’t imagine with billions of dollars you would tolerate that kind of single failure point, so how do these guys do it?
In: Economics
You have a fundamental misunderstanding. When you buy and sell stocks, you own and sell the stocks, whether you’re doing it yourself directly or a brokerage is doing it for you. The brokerage going under would be functionally equivalent to if you decided to use a different broker; you’re just being forced in the former scenario.
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