Question

7. The SIPC: A. guarantees investors against any loss related to an investment account held at...

7. The SIPC:

A. guarantees investors against any loss related to an investment account held at a brokerage firm.

B. guarantees cash balances held in brokerage accounts up to $500,000.

C. is an agency of the federal government.

D. protects private brokerage firms from bankruptcy.

E. protects investors from missing assets when a brokerage firm closes.

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Answer #1

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Correct answer is option : E  protects investors from missing assets when a brokerage firm closes.

SIPC (The Securities Investor Protection Corporation) help to protect investor from missing asset when a brokerage firm closes.

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