Typically, you the private investor do not “buy” the stock.
You contract the broker to act as your agent, who buys the stock.
They buy the stock with your money, and have some rights of ownership. For instance, there are times they can liquidate “your” stocks to cover “their” bets in order to protect the system.
Unless you have something physical in your hand, do you really own it?
Once the broker buys the stock, you own it.
“For instance, there are times they can liquidate “your” stocks to cover “their” bets in order to protect the system.”
A ridiculous claim.
The only time that a brokerage can sell your stocks is if you get a margin call that you can’t cover.
There have been reports, to the best of my knowledge that remain unconfirmed, that Robinhood was selling users’ shares in Gamestop without the user having entered a trade.
If that is ever confirmed, Robinhood is over, even if they manage to survive the other ways that they failed their userbase this week.
But, to the best of my knowledge, all we have are allegations at this point.