Securities Investor Protection Corporation


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Related to Securities Investor Protection Corporation: FDIC, FINRA, Capital structure theory

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 ?
The agencies also provided for a disclosure concerning the Securities Investor Protection Corporation (SIPC) and other forms of insurance when mutual funds are sold by broker--dealers on bank premise.
Janney is an independently operated subsidiary of The Penn Mutual Life Insurance company, and is a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).
Bush as Chairman of the Securities Investor Protection Corporation (SIPC) and continued to serve under President Barack Obama.
With respect to the GAO recommendation that Securities Investor Protection Corporation (SIPC) insurance be extended to customer accounts at registered government securities brokers and dealers, there could be some marginal benefits in terms of customer protection, but other regulatory changes might be necessary in connection with the adoption of this proposal.
Results were achieved with the supervision and assistance of the bankruptcy court, the securities investor protection corporation, the commodity futures trading commission, several committees of the Senate and House of Representatives, regulators and other parties.The results achieved do not diminish the importance of the actual segregations failure that led to MFGI's collapse.

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