If your stockbroker gives you bad advice and you lose your investment:
A) the government will reimburse you similar to reimbursing depositors if a bank fails.
B) the government will not reimburse you for the loss; you are not protected from bad advice by your stockbroker.
C) these losses would be covered under FDIC insurance.
D) your investment would only be covered if the stockbroker was employed by a bank.

Question

Quizplus · Accepted Answer

Investment losses resulting from bad advice from a stockbroker are not protected by the government or FDIC insurance. Investors are responsible for making informed investment decisions and should carefully research their stockbroker's advice before making any investments.

If Your Stockbroker Gives You Bad Advice and You Lose