Could the event be that if the broker (eg. Scottrade and ETrade) have accepted to sell Tyhee shares short during a period of time ... it is always nice with a transaction fee ... without the broker having them backed by physical long Tyhee shares (Naked Shorts) ... within the required period ... or ever ... then phantom shares have been created by the broker.
In net ... if the broker is balancing out all Tyhee share holders accounts (both the long and shorts accounts) the broker now will be net short of Tyhee shares. Hence the broker can not ask the agent for the pyhsical delivery !!!of Tyhee shares they do not have.
... not until those short Tyhee accounts have been covered ... And they need to be covered (bought back) by the short client. ... And the broker can not force those short accounts to cover.
I asked ETrade for evidence to document that they have requested the agent of delivery of my shares ... they rejected ... they could not provide it to me.
I am paranoid or ... ?
//EM
