Glossary Word Definition: Securities Investor Protection Corporation (SIPC)
Securities Investor Protection Corporation (SIPC)
A nonprofit organization created by an act of Congress. SIPC provides funds for use, if necessary, to protect customers' cash and securities that are on deposit with a SIPC member firm in the event the firm fails and is liquidated. SIPC currently provides $500,000 in protection for investors' accounts (which does not protect against market losses).