Series 7 - General Securities Representative Exam

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SIPC

Is a nonprofit corporation created by an act of Congress to protect the clients of brokerage firms that are forced into bankruptcy
A
Applies only to options contracts
B
Applies only to municipal bonds
C
Applies only to convertible bonds
D

Explanations

SIPC is the Securities Investor Protection Corporation. It is a nonprofit corporation that protects against the loss of cash and securities – such as stocks and bonds – held by a customer at a financially-troubled SIPC-member brokerage firm