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PROTECTING YOUR BROKERAGE HOLDINGS.

  • Published In: Kiplinger Personal Finance, 2024, v. 78, n. 3. P. 32 1 of 3

  • Database: Academic Search Ultimate 2 of 3

  • Authored By: CLARK, KIM 3 of 3

Abstract

The Securities Investor Protection Corp. (SIPC) is a nonprofit organization created by a federal law in 1970 to protect investors against the loss of cash and securities when a member brokerage fails. SIPC's mission is to return investors' holdings in the event of a brokerage failure, but it does not protect against fraud or market losses. SIPC protection applies in cases of theft or unauthorized transactions, and it has overseen the liquidations of 330 failed brokerage houses since its creation, returning over $140 billion to investors. SIPC protection covers up to $500,000 for cash and securities, with a maximum of $250,000 in cash. The organization is funded by a fee paid by member broker-dealers and has a reserve fund of about $4.4 billion. SIPC does not currently protect cryptocurrency investments or holdings. [Extracted from the article]

Additional Information

  • Source:Kiplinger Personal Finance. 2024/03, Vol. 78, Issue 3, p32
  • Document Type:Article
  • Subject Area:Biography
  • Publication Date:2024
  • ISSN:1528-9729
  • Accession Number:174984727
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