If you are investing in 401(k), IRA, Roth IRA etc., you better be advised of what SIPC stands for otherwise you may be in for surprises.
This is how SIPC is defined by the U.S. Securities and Exchange Commission:
"If your brokerage firm goes out of business and is a member of the Securities Investor Protection Corporation (SIPC), then your cash and securities held by the brokerage firm may be protected up to $500,000, including a $250,000 limit for cash. When a SIPC member becomes insolvent, SIPC will ask a court to appoint a trustee to supervise the firm's liquidation and to process investors' claims.
SIPC covers most types of securities, such as stocks, bonds, and mutual funds. But SIPC does not protect you against losses caused by a decline in the market value of your securities. And it does not provide protection for investment contracts not registered with the SEC.
"
Make sure your investment is in a provider who is a SIPC member. If you are investing your money in a on-SIPC member you need to be extra careful.
In any case your read to end the following link if you don't want to be one involved in a scam as in American Greed.
https://www.sec.gov/fast-answers/answerssipchtm.html
This is how SIPC is defined by the U.S. Securities and Exchange Commission:
"If your brokerage firm goes out of business and is a member of the Securities Investor Protection Corporation (SIPC), then your cash and securities held by the brokerage firm may be protected up to $500,000, including a $250,000 limit for cash. When a SIPC member becomes insolvent, SIPC will ask a court to appoint a trustee to supervise the firm's liquidation and to process investors' claims.
SIPC covers most types of securities, such as stocks, bonds, and mutual funds. But SIPC does not protect you against losses caused by a decline in the market value of your securities. And it does not provide protection for investment contracts not registered with the SEC.
"
Make sure your investment is in a provider who is a SIPC member. If you are investing your money in a on-SIPC member you need to be extra careful.
In any case your read to end the following link if you don't want to be one involved in a scam as in American Greed.
https://www.sec.gov/fast-answers/answerssipchtm.html
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