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Even with full shares they are held in street name - that is the brokerages name. So the story isn't much different than it is today.

• Animats 7y ago
  No, they are held in "street name" but the customer still owns them. You're not just a creditor of the broker. I've had a broker go bust, so I've been through the unwinding process. A broker which just has pretend stock ownership as a book entry with the broker is called a "bucket shop".[1] A crime in most US states since the 1920s. [1] https://en.wikipedia.org/wiki/Bucket_shop_(stock_market) https://en.wikipedia.org/wiki/Bucket_shop_(stock_market)
  • jdsully 7y ago
    There may be regulatory technicalities that must be sorted out. But there isn't any reason this couldn't be handled in exactly the same way as street name shares are today. Voting rights would be interesting.
    • deleted 7y ago
      [deleted]
    • toomuchtodo 7y ago
      SIPC replied to an inquiry I emailed, and said they have no guidance on how they would handle fractional shares.