SIE Exam Question 687: Answer and Explanation

Question: 687

If an investor's brokerage firm goes out of business and is a member of the SIPC, then the investor's cash and securities held by the firm may be protected up to __________, including a __________ limit for cash.

• A. $500,000, $250,000
• B. $500,000, $500,000
• C. $1,000,000, $250,000
• D. $1,000,000, $500,000

Correct Answer: A

Explanation:

If an investor's brokerage firm goes out of business and is a member of the SIPC, then the investor's cash and securities held by the firm may be protected up to $500,000, including a $250,000 limit for cash.