Course: Investment Planning
Lesson 2: Securities Markets and the Fed
The coursework states that the SIPC will pay claims up to $500,000, but in Example 2, they only gave Bruce $350,000. Why is that?
SIPC will protect investors up to $500,000 — but only $250,000 of which can be cash. Bruce had $400,000 in cash with his broker, so he’s only getting $250,000 of that back. And then his $100,000 of securities for a total of $350,000.
Have a great evening!