The SIPC:
A)guarantees investors against any loss related to an investment account held at a brokerage firm.
B)guarantees cash balances held in brokerage accounts up to $500,000.
C)is an agency of the federal government.
D)protects private brokerage firms from bankruptcy.
E)protects investors from missing assets when a brokerage firm closes.

Question

Quizplus · Accepted Answer

The SIPC (Securities Investor Protection Corporation) protects investors from missing assets when a brokerage firm closes, but it does not guarantee against investment losses or protect cash balances up to $500,000. It is not a federal agency and does not protect brokerage firms from bankruptcy.