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Under the Terms of the 1970 Securities Investor Protection Act

Question 193

Multiple Choice

Under the terms of the 1970 Securities Investor Protection Act, what is the status of a customer whose account assets exceed SIPC insurance coverage when his broker/dealer becomes insolvent?


A) the US Treasury is pledged to make up the deficiency
B) all broker/dealers are assessed to fully satisfy the deficiency
C) the customer becomes a general creditor of the insolvent firm for the amount of deficiency
D) SIPC will issue a debenture to guarantee eventual repayment of the deficiency

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