Not only switching ownership, but market makers are allowed to sell stocks without having it, in order to 'provide liquidity'. They can add stocks into the system, and cover it later. Not actual registered shares of a company of course, but the so called beneficiary owner shares traded under the DTCC system encompassing all the brokers etc.
mollila t1_iub05px wrote
Reply to comment by ringingbells in Is it just me, or is a a Market Makers' role in Order/Execution/Settlement confusing? Question: The CEO of Webull talked about their Market Maker, saying: "We're able to buy a share without driving up the stock 10% every time?" What does this work with Price Discovery & Supply & Demand? by ringingbells
Not only switching ownership, but market makers are allowed to sell stocks without having it, in order to 'provide liquidity'. They can add stocks into the system, and cover it later. Not actual registered shares of a company of course, but the so called beneficiary owner shares traded under the DTCC system encompassing all the brokers etc.