SIPC
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Securities Investor Protection Corporation |
|---|---|
| Categories | Business & Finance |
SIPC stands for Securities Investor Protection Corporation, a stock market & investing abbreviation.
Nonprofit corporation created by the US Congress in 1970 that protects customers of failed brokerage firms, covering up to $500,000 per customer in missing securities and cash, of which up to $250,000 can be cash. It does not protect against market losses.
Example: Your account at the brokerage is SIPC-protected, but that will not cover a drop in your stock prices.
Usage notes
Pronounced "SIP-ick." Most US broker-dealers must be SIPC members and fund it through assessments. Coverage applies when a firm fails and customer assets are missing, as in the 2008 collapse of Bernard L. Madoff Investment Securities. Many brokers buy additional "excess SIPC" insurance from private insurers.
Related abbreviations
More stock market & investing abbreviations
- RSI – Relative strength index
- S&P 500 – Standard & Poor's 500
- S-1 – Form S-1 (registration statement)
- SEDOL – Stock Exchange Daily Official List
- SEO – Seasoned equity offering
- SGX – Singapore Exchange
- SL – Stop-loss
- SMA – Separately managed account
- SPAC – Special purpose acquisition company
- SPX – Standard & Poor's 500 Index (ticker symbol)
- SRI – Socially responsible investing
- T+1 – Trade date plus one business day