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Frauds and Scams > Securities Investor Protection Corporation (SIPC)

The following information is about Securities Investor Protection Corporation (SIPC).

Securities Investor Protection Corporation (SIPC) Defined

A nonprofit corporation established by an act of Congress in 1970 in order to protect the customers of brokerage firms from the insolvency of those firms. All broker-dealers registered with the Securities and Exchange Commission and with a national exchange are required to join. SIPC provides up to $500,000 in protection, of which no more than $100,000 may be in cash.

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