The Security Investor Protection Corporation (SIPC) protects investors against losses of up to $25,000,000 caused by the failure of a securities firm.

Question

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The SIPC protects investors against the loss of cash and securities (such as stocks and bonds) held by a customer at a financially-troubled SIPC-member brokerage firm. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash.

The Security Investor Protection Corporation (SIPC) Protects Investors Against Losses