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The Guide of completing Depository Trust & Clearing Corporation Netherlands Online

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PDF Editor FAQ

If I buy individual stocks through an app like Robinhood, where is the certificate proving I own the shares?

Under normal conditions, physical share certificates are no longer created when an investor purchases shares that are traded on a stock exchange. It’s a slow, labour intensive, expensive process that is incompatible with today’s high speed financial markets.Instead, a central securities depository keeps track of the owners of the shares, mostly in the form of electronic records, and updates its records when ownership changes. In the USA, the depository is the Depository Trust Company, a subsidiary of the Depository Trust & Clearing Corporation.

What are some companies that are owned by their customers?

Some additional answers....Insurance:Northwestern Mutual LifeNew York Lifeand several other large mutual insurers which are owned by policyholdersPayments:Visa and MasterCard (until 2008 and 2006)The Clearing House (operates CHIPS, EPN, and SVPCO)Banking:Credit UnionsThe Federal Reserve District BanksSee Who owns the reserve banks?Mutual FundsVanguard GroupSecurities/Futures:NYSE / CBOE / CME / NASDAQ (all until demutualization at various times from 2000-2010)Depository Trust & Clearing CorporationUtilities:Community electric and water cooperativesNews:Associated PressRetail:Ace Hardware (owned by its stores [though not really the end customers] which buy the brand and products from the cooperative)

Is it possible to short shares of a private company on the secondary markets?

This is not possible in scale today. In order for a robust secondary market, including short sales, to emerge you would need private companies to participate in a centralized clearing, settlement, and share registry system. In the public equity market the Depository Trust and Clearing Corporation (DTCC) fulfills this role. There is no such system in place for private companies and so even if a private company were to permit the lending necessary to facilitate a short sale it could only be done on a small scale through a bilateral OTC transaction with the credit risk issues described by Jerry Neumann.

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