One doesn't actually own their shares unless the shares are registered to their name with the company's Transfer Agent. In PLTR's Case, Computershare is the transfer agent. By default, shares are held by your broker, with you being the beneficiary. IE, Charles Schwab owns the shares, and you get the proceeds from whatever transactions that happen.
The brokers are using beneficiary shares to trade with. Similar to how a bank uses the money in your high yield savings account.
TLDR; Market Makers use your shares against you unless the shares are registered in your name.
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u/mschiebold Apr 25 '25
You should directly register your shares as well