SIPC Coverage
Chapters in this video
- 0:00 What SIPC is: locksmith, not bodyguard
- 1:12 SIPC organization and who funds it
- 1:51 The two mandatory trigger conditions
- 2:44 The $500,000 total and $250,000 cash sublimit
- 4:17 Capacity and account grouping rules
- 5:13 Protected and unprotected assets
- 6:40 SIPC versus Federal Deposit Insurance Corporation
- 8:11 Provocative final trap scenario and rapid-fire recap
What this video covers
- Why SIPC is a private non-profit membership corporation, not a government agency, and how it funds itself through broker-dealer assessments
- The two mandatory conditions for SIPC protection: member firm financial failure plus missing customer assets
- How the $500,000 per customer per capacity limit works, and why three individual accounts at the same firm share one limit
- Why the $250,000 cash sublimit sits inside the $500,000 total, not on top of it
- Which assets qualify as protected securities, including certificates of deposit held in brokerage accounts, and why unregistered crypto and fixed annuities fail the test
- Why market losses, worthless stock, and bad investment advice are never covered: nothing is missing for the locksmith to restore
- How SIPC differs from the Federal Deposit Insurance Corporation on agency status, funding source, protection type, and the meaning of the $250,000 figure
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