SIPC

Categories: Brokerages, Insurance,

securities investor protection corporation: in the United States, a corporation created by Congress in 1970 that is a mutual insurance fund established to protect clients of securities firms. In the event of a firm being closed because of bankruptcy or financial difficulties, the SIPC will step in to recover clients' cash and securities held by the firm. The corporation's reserves are available to satisfy cash and securities that cannot be recovered up to a maximum of $500,000, including a maximum of $100,000 on cash claims.