Me as a investor who just started out and my father who knows not much about investing had a discussion over some basic things about investing. At some point he asked me some questions about brokers and I wasn't able to answer them so I want to ask them here.
Let's say I invest through IBKR or any other brokerage platform and build some portfolio. What would happen with my stocks and my portfolio if that brokerage firm has to shutdown for some reason? Does the stocks I own disappear or they would be reallocated to other platform somehow?
What is the real proof of me having these stocks and being an owner of those companies? I know people buy stocks and see them on their screens on brokerage platforms digitally but that's just doesn't seem convincing enough for him of truly having them and being an owner of companies (or is it convincing enough?) . In the old days I believe stocks were represented on paper and person who had them was the owner of a company and that was the proof.
In general what I believe my father wants to know is how his ownership of a stock is dependent on a existence of a brokerage platform he'd use. Also he wants to know what is considered to be convincing enough of having a stock to feel true ownership in this digital world?
