Securities Investment Protection Corporation (SIPC)

The Securities Investor Protection Corporation (SIPC) is a nonprofit organization established to protect investors if their brokerage firm fails financially. If a broker-dealer goes bankrupt, SIPC steps in to recover and return customer securities—like stocks and bonds—up to a certain limit. It does not protect against investment losses from market fluctuations. SIPC's role is to facilitate the transfer or liquidation of the firm's assets to ensure investors' accounts are protected and their securities are safe, promoting confidence and stability in the securities industry.