Securities Investor Protection Corporation (SIPC)

The Securities Investor Protection Corporation (SIPC) was created by the U.S. Congress under the Securities Investor Protection Act of 1970. It is a non-profit, membership corporation, funded by its member securities broker-dealers. SIPC's mission is to protect investors by returning customers' securities and cash that are in their accounts when a brokerage firm is liquidated. SIPC protection covers up to $500,000 per customer for securities and cash (including a $250,000 limit for cash only). It is important to note that SIPC does not protect against market losses or the decline in the value of securities.