Capital MarketsQuestion 325 of 398
A brokerage firm becomes insolvent, and customer securities are missing from their accounts. Which organization is designed to protect these customers up to specified limits?
a.The FDIC
b.The Federal Reserve
c.SIPC (Securities Investor Protection Corporation)
d.The MSRB
Explanation
SIPC protects customers of failed broker-dealers by covering missing securities and cash up to specified limits (currently $500,000 total, including up to $250,000 in cash). SIPC does not protect against market losses; it addresses the failure of the brokerage firm itself.
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