Definition
Protection available for investors’ assets held at brokerage firms. SIPC is the first line of defense in the event a brokerage firm fails owing customers cash and securities that are missing from customer accounts.
“Although not every investor is protected by SIPC, no fewer than 99 percent of persons who are eligible get their investments back from SIPC. From its creation by Congress in 1970 through December 2004, SIPC advanced $570 million in order to make possible the recovery of $14.2 billion in assets for an estimated 624,000 investors”.
Referring Cite
Additional Helpful Information
Many brokerage firms offer protection in excess of the SIPC limit. Individuals should check with their brokerage firms to determine whether their assets are fully protected, and if not when can be done to ensure full protection