Shareholder Protection Insurance Corp. (SIPC)

[Villages PL]

I think I got that heading correct. I lost my notes. I believe every brokerage account is insured up to a minimum of $500,000, including $250,000 coverage for the cash account. The last time I asked my broker about it was probably about 15 to 20 years ago when I had a lot less equity. At that time I think I was told they had extra coverage beyond the $500,000. Now, again, I'm wondering if they have enough coverage for me, since my account equity has grown since then.

What is a reasonable amount of coverage to expect? How much coverage does your broker have? Should we expect it to be in writing? Last time I just took the broker's word for it. And what would you do if your broker didn't have enough to cover your equity?

I understand SPIC covers just about everything except normal market losses and/or company-stocks going bankrupt.

Any information will be appreciated.

[Bill-n-Brillo]

SIPC - Securities Investor Protection Corporation

Here's their web site - lots of info:

SIPC - Securities Investor Protection Corporation (http://www.sipc.org/)

Bill :)

[Villages PL]

SIPC - Securities Investor Protection Corporation

Here's their web site - lots of info:

SIPC - Securities Investor Protection Corporation (http://www.sipc.org/)

Bill :)

Thanks, Bill, that website had a lot of good information. After I posted, I called my broker and he suggested that I go to their website. There I found that they have additional insurance coverage "up to an aggregate of $600 million", limited to 150 million per customer.

It sounds good but how would I know if $600 million is enough to cover ALL of the securities and cash of all of their customers? Although, I think it could be enough because it's a relatively small brokerage firm with about 3 offices. There's one in New York City, one in California and one in Florida.

On the plus side, I have been doing business with them for over 20 years, so I know it's not a fly-by-night brokerage firm. :)