Securities Investor Protection Corporation - SIPC


DEFINITION of 'Securities Investor Protection Corporation - SIPC'

A nonprofit corporation created by an act of Congress to protect the clients of brokerage firms that are forced into bankruptcy. Members to the SIPC include all brokers and dealers registered under the Securities Exchange Act of 1934, all members of securities exchanges and most NASD members.

BREAKING DOWN 'Securities Investor Protection Corporation - SIPC'

SIPC is an insurance that provides brokerage customers up to $500,000 coverage for cash and securities held by the firm (although coverage of cash is limited to $250,000).

  1. Dealer

    A person or firm in the business of buying and selling securities ...
  2. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  3. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  4. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  5. National Association Of Securities ...

    The NASD was a self-regulatory organization of the securities ...
  6. Broker

    1. An individual or firm that charges a fee or commission for ...
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  1. Why are mutual funds not FDIC-insured?

    Mutual funds are not Federal Deposit Insurance Corporation (FDIC)-insured because money invested in funds are not considered ... Read Full Answer >>
  2. What financial regulation exist to control the secondary market?

    The secondary market, most commonly referred to as the stock market, is largely built on self-regulating exchanges that also ... Read Full Answer >>
  3. I know there is a form of deposit insurance where a portion of my bank account deposits ...

    First things first, it's only partially correct to think that a portion of your bank deposits is protected. The Federal Deposit ... Read Full Answer >>
  4. How often do mutual funds report their holdings?

    The Securities and Exchange Commission (SEC) requires mutual funds to report complete lists of their holdings on a quarterly ... Read Full Answer >>
  5. What is the Social Security administration responsible for?

    The main responsibility of the U.S. Social Security Administration, or SSA, is overseeing the country's Social Security program. ... Read Full Answer >>
  6. Where are the Social Security administration headquarters?

    The U.S. Social Security Administration, or SSA, is headquartered in Woodlawn, Maryland, a suburb just outside of Baltimore. ... Read Full Answer >>

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