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What happens if a market maker fails to deliver the promised stocks due to inability to purchase stocks? Penalties to the government?


> What happens if a market maker fails to deliver the promised stocks due to inability to purchase stocks?

Unless volume is zero, there is no “inability to purchase stocks.” Just inability at a desired price. If a market maker fails to deliver, they get hit with fines and fees from clearing infrastructure, exchanges and, eventually, the SEC.




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