alleryStart learning →The Securities Investor Protection Corporation insures each customer's account up to what amount?
AUp to $100,000
BUp to $250,000
CUp to $500,000
DUp to $750,000
Answer & Solution
Correct answer: C. Up to $500,000
1. The Securities Investor Protection Corporation was established in 1970.
2. Its purpose is to protect customers if a brokerage firm fails.
3. It does that by insuring each customer's account for up to $500,000.
4. The protection covers brokerage failure rather than losses from a security falling in price.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.7 Buying and Selling at Securities Exchanges_
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