What is investor Protection Corporation?
The US Congress was created in 1970 in 1970 in 1970 in 1970 to restore customers of brokerage companies that become insolvent. It also protects against unauthorized transactions. SIPC is a non -profit company funded by a member. It protects the customer's demands to up to $ 100,000 in the US (USD) in cash and for a maximum total of $ 500,000.00 for a combination of cash and security investments. In general, the time the investor needs to obtain its funds is between one and three months. However, inaccurate records or fraud on the part of the brokerage company can extend the recovery time.Is from the unsuccessful brokerage firm for more solvent. This generally occurs when records of unsuccessful companies were in good condition. The customer can then decide to stay with the new company or find others as it considers appropriate.
It is important to realize that the Society for PotrThe investor of protection Corporation does not ensure the value of shares and other securities. If the value of the shares falls, the investor cannot get back the lost value, only the owned shares. This is the primary difference between SIPC and federal deposits in the US (FDIC). FDIC ensures the value of deposits in the banking system.
There are exceptions to what the company provides protection for protection of securities investors. Some of these exceptions include annuity, commodity and futures contracts and any investment of partners in a unsuccessful brokerrage company. Also, SIPC does not cover contracts that have not been registered with the Securities and Stock Exchange Commission (SEC), or fraudulent investments that the client could mislead.
If a potential investor wants to be sure that its securities are protected by SIPC, it should be certain that a brokerage company - or any other company that it can use to process transactions - is a member of SIPC. This is important because maclEr companies sometimes have associated companies that offer investment products that are not protected by SIPC. Also, any investment checks should always be carried out by a SIPC broker to ensure the company's investment protection of investors.