Definition of Securities Investor Protection Corporation / SIPC

The industry’s nonprofit insurance company, which provides protection for investors in case of broker dealer failure. All member firms must pay dues to SIPC based upon their revenue. SIPC provides coverage for each separate customer for up to $500,000 of which a maximum of $250,000 may be cash. The Securities Investor Protection Act of 1970 created SIPC.

Applying "Securities Investor Protection Corporation / SIPC" to Securities Exams:

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