Securities Investor Protection Corporation
The Securities Investor Protection Corporation (SIPC, sometimes pronounced / s p k/) is a federally mandated, non-profit, member-funded, corporation in the United States. It protects investors in certain securities from financial harm if a broker-dealer fails. It does not protect against losses in the securities markets, identity theft, or other 3rd-party fraud. SIPIC was born in the shadow of the "Paperwork Crunch", as a means to restore confidence in the U.S. securities market. It's creation was mandated by the Securities Investor Protection Act of 1970, as a way to quell investor insecurity and save the securities market from a financial crisis.