• See Securities Investor Protection Corporation.
• Is the Securities Investor Protection Corporation. It was created to protect the clients of a securities firm in the event that the firm went into bankruptcy. There are limitations on the coverage as to cash and securities. Many brokerage firms purchase private insurance to increase the securities value limit for their accounts. It should be noted that this coverage is not offered or guaranteed by the Federal Government. SIPC is comprised of members who are brokers and/or dealers registered under the Securities Exchange Act of 1934. It should be noted that in event of a bankruptcy there may not be a timely disposition of options or other security derivatives.
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Securities exchange act of 1934
Securities investor protection corporation
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| ||Securities investor protection corporation: Abbreviated 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 NASD members. SIPC provides customers of these firms up to $500,000 coverage for cash and securities held by the firms (although coverage of cash is limited to $100,000).|