ShmoopTube

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finance a la shmoop what is the SIPC SIPC say it fast and it'll protect you [Guy stood in front of a skyscraper]

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fast Civic Securities investor Protection corporation it's an

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intentionally nonprofit corporation not like shmoop which basically insures your [Building that says 'deadpuppiesashats.com']

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assets like investments in stocks and bonds which are held at a brokerage firm

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which is troubled well the SI pc exists because in the [Piles of money in front of brokerage firms]

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past brokerage firms have in fact gone bankrupt sometimes its customers then

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lose everything they had with that fly-by-night brokerage and the notion [Bags of money next to people start to disappear]

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that investors can't trust the people to whom they are giving their life savings

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is a very bad notion bad for America that Trust has to be protected at all [Knights appear]

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costs or it means the death of well trust in the financial system of America [Gravestone for trust]

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at which point things get yeah oh so bad so today the SIPC limit is 500 grand of [Bomb explodes]

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protection with half of that being protections against cash holdings and

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the rest covers investments in stocks and bonds if you have more money than

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that at a given brokerage like an individual one and they should disappear [Types of invested money shown]

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well too bad for you at least for everything over 500 grand [Calculation showing a loss of $100,000]

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so because the u.s. is such a kindly loving place both citizens and [The statue of liberty]

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non-citizens are protected under SIPC and this is actually a very good idea [Two people stood under a SIPC umbrella]

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financially because it encourages foreign investors to trust the u.s. [Businessmen shaking hands]

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system often more deeply than they trust the systems of their home country

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note that the SIPC mandate is not to protect bad stock picks bonds that don't

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keep up with inflation or lousy advice from that slick-talking broker with [Broker with a cigar handing over tickets]

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great hair in the NBA Tickets always ready for you and your family so if this

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set of definitions or protection sounds familiar it should the SIPC is kissing

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cousins with the FDIC or Federal Deposit Insurance Corporation because the FDIC [People with SIPC and FDIC briefcases for heads loved up]

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is in fact sensitive to the protection of the value of securities you have

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invested with it and if you care about all this crap well we have a whole opus [Shmoop video on the FDIC]

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video on the FDI see - yeah good luck staying awake for

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the whole thing [Guy falls asleep behind his computer]

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