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Securities Investor Protection Corporation (SIPC)

A nonprofit corporation that insures customers' securities and cash held by member brokerage firms against the failure of those firms.

Securities Investor Protection Corporation

A not-for-profit organization mandated under American law to insure investors against the potential bankruptcy of a broker-dealer. If a broker or dealer goes bankrupt after a client has entrusted it with cash or securities, the SIPC will compensate the client up to $500,000 (or $100,000 if the client is owed only cash). All brokers, dealers, and exchanges registered with the SEC are required to be members of the SIPC and fund its activities. It is important to note that the SIPC does not insure against losses by investors, only against the possibility of a broker-dealer being unable to conduct a transaction because of bankruptcy.


Securities Investor Protection Corporation (SIPC).

The Securities Investor Protection Corporation (SIPC) is a nonprofit corporation created by Congress to insure investors against losses caused by the failure of a brokerage firm.

Through SIPC, assets in your brokerage account are insured up to $500,000, including up to $100,000 in cash, but only against losses that result from the brokerage firm going bankrupt, not against market losses caused by trading decisions or other causes.

All brokers and dealers must register with the Securities and Exchange Commission (SEC) and are required to be SIPC members though they can lose their affiliation under certain circumstances. Clients of nonmember firms are not insured.

References in periodicals archive ?
For more information about SIPC, see "The Investor's Guide to Brokerage Firm Liquidations" at http://www.
Extending or connecting SIPC systems to other devices is designed to be as easy as plugging in an extension cord.
For that purpose, SIPC maintains a special reserve fund authorized by Congress to help investors at failed brokerage firms.
Since SIPC bears all of the costs of administration, such as legal and accounting fees in the liquidation, all of the assets recovered in litigation and settlements go directly to customers.
Department of the Treasury, was also named to the SIPC Board in September 2014.
SIPC President Stephen Harbeck stated: "Any investor whose brokerage firm is being liquidated through SIPC who believes they are missing stocks or cash can find information about the proceeding on our website C www.
As always, SIPC continues to focus on our core mission: protecting customers against the loss of missing cash or securities in the custody of failing or insolvent SIPC member brokerage firms.
SIPC President Stephen Harbeck said: "When the SIPA liquidation commenced in September 2008, the possibility of the full satisfaction of customer claims was something SIPC and the Trustee hoped for, but was genuinely uncertain at that time.
SIPC President Stephen Harbeck said: " Acting Chair Bowen led SIPC during a critical time over these past four years.
Harbeck said that SIPC welcomes these studies of the backup computing capability, contingency plans, and other redundant facilities that brokerage firms have developed since the "Y2K bug" computer issue arose in the late 1990s and the 9/11 attack on New York City.
Through this coverage, each client account held at a participating CAPCO member firm receives excess SIPC protection up to its net equity for securities and cash held in the account at the brokerage firm.