The Securities Investor Protection Act of 1970
A)protects investors against all investment losses up to $500,000.
B)guarantees delivery of shares (up to $500,000)and cash (up to $100,000)held by a bankrupt broker.
C)is offered only by full-service brokers.
D)established binding arbitration as the method of resolving broker-related disputes.

Question

Quizplus · Accepted Answer

The Securities Investor Protection Act of 1970 guarantees delivery of shares (up to $500,000) and cash (up to $100,000) held by a bankrupt broker. This act does not protect investors against all investment losses, is not offered only by full-service brokers, and did not establish binding arbitration as the method of resolving broker-related disputes.