Replying to Avatar DataNostrum

Right, but it's not the bank giving this guarantee but some other body, for example the FDIC in the US.

But according to the book, this also applies to securities. So any stocks or bonds you hold, are not actually yours, and in case your custodian goes bankrupt, "your" stocks will go to someone else.
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Big Dave 2y ago

Again it's not cut and dry there are different ways to hold stocks and bonds and they will all have different criteria on how they can be used by the body that is managing them for you.

This is why people need to educate themselves before investing or find a very reputable broker to give them all the information so they can make an educated decision.

But the smoke and mirrors of the classic financial system is the main reason I can to blockchain in the first place. When I lose money here there's only one person I can blame 😂😂

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DataNostrum 2y ago

Agreed, that's why I like Bitcoin as well.

Educating myself on stocks and bonds is precisely what I am doing, but I had never encountered this startling concept before. A quote from the book:

"There are now no property rights to securities held in book-entry form in any jurisdiction, globally."