Dstock, "do you really own the shares if FTD...?"
Retail investors have a direct legal contract with their brokerage firm (ETrade, Fidelity, etc) for the $ value of shares they purchase. There is no purchase of exact certificates as I understand it.
I think the shorts would love this question to be continually talked about in hopes that it might be a continual reminder to dissuade some buying. But I have no concerns. Even in the case a market maker was unable to honor their financial liability to the brokerage, the brokerages would likely still pay the retail investor the full value of the stock, out of its own funds. That is their business, their reputation, and the brokerage would then go after the market maker on its own in court to square things away. Brokerages also have insurance to cover these type of things I am sure.
In the case of FTD on one stock, any stock, it would be held in a diversified way over many multiple brokerage houses. I highly doubt the financial value of one stock divided over many brokerage houses would overwhelm the liquidity capacity of any major brokerage firm. So I doubt the risk inherent in the question. There is also SIPC protection, etc. So again I am not concerned.
The only exception I can think of is if you enter a contractual lending agreement with your brokerage to lend your shares out for interest income. That would take the brokerage out and put instead the counterparty, likely a short, as who you rely on to pay you back. That is risky IMO, not owning shares through a major brokerage house.
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