RE: RE: It's Happening!I know that Financial Institution permit the lending of your titles to other investors who want to short your stock. Since the shorter has to hold a minimum balance and the financial institutions gives itself the right to force a transaction if this investors account goes below a certain value, I am not sure what happens if this investors goes belly-up. I beleive that it is the financial institution will absorb this loss but I am not sure what happens if the financial instution is in a financial mess. Since RRSP holders can't actually hold the title, maybe I am at risk if the shorter can't return the title and the financial institution goes bankrupt.
This is the only third party risk that I could find in an stock investment like FR. On the contrary, ETF's has a lot of third party risk.