Jim in a earlier post you made what I assume was direct quote -
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In their own words re Ameritrade:
"Ameritrade does not trade on its own account or make a market in any security. Client trades are executed on independent exchanges, through independent market makers or through ECNs."
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Trying to understand this shorting thing. Ameritrade (and I'm guessing other online brokers) use market makers to execute the trades, but they will 'loan' someone who wants to short a stock (say MSFT) shares from their own inventory, or if needed from another clients (our fellow traders) account.
Is that right?
Assuming it is, what if I want to sell 10k MSFT and TDAm doesn't have any in their inventory, and none of their clients do either? (unlikely I know, but what if...)
Where do they get the shares? Does a market maker get them from another broker? i.e. He buys them and then sells them to my broker?
