Hypothetical Question;
Suppose ETRADE has a few million or more naked short shares
and a receiver is appointed. Those shares owned by etrade are not part of the share dividend that the receiver would go after. Would etrade be able to just wipe away a divvy that they were liable for?
Seems as if before any type of clawback could happen they would need to do an audit of every share shown by brokers. This would expose all naked shorts.
I am a newby to stocks and have no knowledge on any of this,just want to know if I am a complete idiot?