Legal Definitions - SIPC

SIPC

SIPC stands for Securities Investor Protection Corporation. It is a non-profit organization that helps protect investors if their brokerage firm fails.

Let's say you have invested money in a brokerage firm, but the firm goes bankrupt and cannot return your money. SIPC steps in to help you recover your assets, up to $500,000 per account, including up to $250,000 in cash.

Another example is if your broker steals your investments or commits fraud. SIPC can help you recover your assets in this situation as well.

SIPC is like an insurance policy for investors. It helps protect them from losing their investments if their brokerage firm fails or if their broker commits fraud. The examples show how SIPC can help investors recover their assets in these situations.