SIPC (Securities Investor Protection Corporation)

The Securities Investor Protection Corporation (SIPC) is a nonprofit organization that protects investors if their brokerage firm fails financially. While SIPC doesn’t protect against investment losses, it steps in to recover or return customers' securities and cash held by the firm, up to certain limits (currently $500,000, with a $250,000 cash limit). It helps ensure that investors can recover their assets if their brokerage goes bankrupt, providing confidence and stability to the securities market.