Securities Investor Protection Corporation

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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)

A government sponsored organization created in 1970 to insure investor accounts at brokerage firms in the event of the brokerage firms' insolvency and liquidation. The maximum insurance of $500,000, including a maximum of $100,000 in cash assets per account, only covers customer losses due to insolvencies, not losses caused by security price fluctuations. SIPC coverage is similar in concept to Federal Deposit Insurance Corporation coverage of customer accounts at commercial banks.

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 ?
Hudson also served as chairman of the board of directors of the Securities Investor Protection Corp. He is a former trustee of the Ford Foundation in New York and is a past chairman of the board of trustees of the National Trust for Historic Preservation.
Congress could expand Securities Investor Protection Corp. (SIPC) coverage to include unpaid customer arbitration awards;
These considerations include: the qualifications of the provider, such as its experience and licensing; the quality of the provider, including its reputation for prompt, efficient and accurate service, especially in providing confirmations and account statements; the reasonableness of the provider's fees; and the security of the account and stability of the provider, including whether protection against theft and loss is supplied through the Securities Investor Protection Corp. (SIPC).
The liquidation case is Securities Investor Protection Corp. v.
According to Picard, this third interim distribution will total approximately USD 505m, and will bring the amount distributed to eligible claimants to USD 5.438bn, which includes USD 806.7m in advances committed to the SIPA Trustee for distribution to allowed claimants by the Securities Investor Protection Corp..
Customers had previously recovered $1.15 billion, including sums committed by the Securities Investor Protection Corp., which helps customers of failed brokerages.
Madoff's victims earlier recovered $1.15 billion, including sums committed by the Securities Investor Protection Corp, which helps customers of failed brokerages.
But less attention has been paid to the question of whether his victims, including dozens of Arkansans, will be entitled to protection by the Securities Investor Protection Corp., a federal government program that, as its name implies, provides some protection for investors in securities in the way the Federal Deposit Insurance Corp.
The National Association of Independent Broker/Dealers (NAIBD) has warned the Securities Investor Protection Corp. (SIPC) that if it fails to decrease the annual fees it boosted significantly on small-and medium-sized broker-dealers after the Bernie Madoff Ponzi scheme, NAIBD will take the issue to Congress.
Most initial investor claims will go before an organization called the Securities Investor Protection Corp., a federal agency that provides up to $500,000 for individual investors who are damaged by the insolvency of a failed brokerage.
Gerig; Dan Cossette; Sally Broughton; Securities Investor Protection Corp.; Mark Devos; SAIF Corp.; Floworks LLC also known as Floworks Inc.; Linworth LLC; Joseph Wehage; and Does 1-4: Plaintiffs allege breach of contract.
Instead, an industry group, the Securities Investor Protection Corp. (SIPC), provides coverage.

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