FINRA Securities Industry Essentials Exam (SIE) SIE Question # 11 Topic 2 Discussion
SIE Exam Topic 2 Question 11 Discussion:
Question #: 11
Topic #: 2
An individual investor has $300,000 in cash and $400,000 in securities held with a financially troubled SIPC member firm for which liquidation has begun. The individual investor’s cash is protected for what amount?
SIPC Coverage Limits: Protects up to $500,000 per customer, including a maximum of $250,000 for cash.
In this case, $300,000 in cash exceeds the SIPC limit, so only $250,000 is protected.
Incorrect Options:
A: $150,000 understates the SIPC limit for cash.
C: The full $300,000 in cash is not protected.
D: Total coverage exceeds SIPC limits.
References:
SIPC Coverage Details:SIPC Protection.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit