Securities Investor Protection Corporation - SIPC

What Does Securities Investor Protection Corporation - SIPC Mean?
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.

Investopedia explains 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 $100,000).

Related Terms

Bankruptcy
Broker
Broker-Dealer
Dealer
National Association of Securities Dealers - NASD
Securities Act Of 1933
Securities and Exchange Commission - SEC
Securities Exchange Act Of 1934
More Related Terms

Related Links

Are My Investments Insured Against Loss? - Money invested in a brokerage account has some protection, but that doesn't mean you can't lose it.
Bank Failure: Will Your Assets Be Protected? - The SIPC and FDIC insure against personal financial ruin when banks or brokerages go belly up.
Brokers and Online Trading - How do you find the right broker for your investment needs? Start by reading our broker tutorial.
Picking Your First Broker - If you're a rookie investor, your first big investment decision should be an informed one.
Is there a form of insurance for my investments?
10 Tips For Choosing An Online Broker - This important investment decision happens before you pick your first stock. Find out how to get it right.
SIPC.org - The official site for the Securities Investor Protection Corporation.

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