SIE practice questionmediumSecurities Investor Protection Corporation (SIPC)
If a broker-dealer goes bankrupt, SIPC coverage applies to:
- ALosses due to market decline
- BAll investment losses
- CAll accounts regardless of size
- DCustomer securities and cash up to set limits✓ Correct answer
Explanation
Why D — Customer securities and cash up to set limits
SIPC covers customer securities/cash up to certain limits if a broker fails. It does not cover investment losses or declines in market value.
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