The Securities Investor Protection Act of 1970 codified at 15 U.S.C. § 78aaa through 15 U.S.C. § 78lll, established the Securities Investor Protection Corporation (SIPC). Most brokers and dealers registered under the Securities Exchange Act of 1934 are required to be members of the SIPC.
The SIPC maintains a fund that is intended to protect investors against the misappropriation of their funds and of most types of securities in the event of the failure of their broker.
Famous quotes containing the words protection and/or act:
“The diversity in the faculties of men, from which the rights of property originate, is not less an insuperable obstacle to a uniformity of interests. The protection of these faculties is the first object of government.”
—James Madison (1751–1836)
“Wonderful “Force of Public Opinion!” We must act and walk in all points as it prescribes; follow the traffic it bids us, realise the sum of money, the degree of “influence” it expects of us, or we shall be lightly esteemed; certain mouthfuls of articulate wind will be blown at us, and this what mortal courage can front?”
—Thomas Carlyle (1795–1881)