Sipc
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Does anyone have an idea on a simple way to explain SIPC coverage compared to FDIC? I don't meant the limits and technical aspects, but in terms the a "simple" client could understand. Specifically, a life-long CD buyer.
Have you thought about typing “sipc” into google? Don’t waste our time with this trivial stuff.
You’re right, my mistake. I’d be much better asking for your time to recommend an Internet fax service. Considering you have made 117 posts in the last 16 days, it is obvious that you have nothing but time.
Like my ten year old son would say:
Bobby Hull, get the ice...
you've just been burnt (sic)
[quote=justcheckin]
Does anyone have an idea on a simple way to explain SIPC coverage compared to FDIC? I don’t meant the limits and technical aspects, but in terms the a “simple” client could understand. Specifically, a life-long CD buyer.
[/quote]SIPC protects clients against losses directly due to failure of the brokerage firm, not loss of value due to market fluctuation.
How’s that?
I would not rely exclusively on my explanation, by the way. Most b/d’s have brochures available that explains SIPC coverage. Read them and decide for yourself if my summary works for you.
Why in the world are you talking about SIPC insurance anyway? They'll just get it confused with FDIC regardless of what you say, and when they lose money you'll have a mess.
Stocks = NO GUARANTEE. Leave it at that.
[quote=joedabrkr]
[quote=justcheckin]
Does anyone have an idea on a
simple way to explain SIPC coverage compared to FDIC? I don’t
meant the limits and technical aspects, but in terms the a "simple"
client could understand. Specifically, a life-long CD buyer.
SIPC protects clients against losses directly due to failure of the brokerage firm, not loss of value due to market fluctuation.
How’s that?
I
would not rely exclusively on my explanation, by the way. Most
b/d’s have brochures available that explains SIPC coverage. Read
them and decide for yourself if my summary works for you.
[/quote]
I wouldn’t talk about it. SIPC coverage is only needed in case like
REFCO where client assets got hopeless mixed up with the firms
accounts. That’s not going to happen at any legally run B/D.