Generally speaking, investments held in brokerage accounts are insured by an agency called the Securities Investor Protection Corporation (SIPC). The SIPC is a quasi-governmental body under the oversight of the SEC. The SIPC is definitely not the brokerage version of the FDIC.
Although the SIPC does not have the regulatory power of the FDIC, it does have one similar function: it insures assets held at all SEC-registered brokerages. When a broker-dealer fails, the SIPC manages the distribution of investors’ assets. If any assets are missing, the SIPC replaces insured securities up to the insurance limits.
There are many kinds …Read More