Securities Investor Protection Corporation (SIPC)

A nonprofit membership corporation created by an act of Congress to protect clients of brokerage firms that are forced into bankruptcy. Membership is composed of all brokers and dealers registered under the Securities Exchange Act of 1934, all members of national securities exchanges, and most members. SIPC provides customers of these firms protection of up to $500,000 of cash and securities, of which no more than $100,000 maybe in cash.

Updated on: 24/04/2023