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A customer has an individual cash account, an individual margin account, a joint cash account with his wife, and a custodial account for each of his 2 children. If the firm liquidates, Securities Investor Protection Corporation covers:

User Mahkitah
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1 Answer

5 votes

Answer:

Each account separately.

Step-by-step explanation:

Securities Investor Protection Corporation coverage is applied "PER CUSTOMER NAME."

Therefore, if a customer has an individual cash account and individual margin account, that is considered as one name; the joint margin account with his wife is a second name; the custodian account for each of the two children is third name; and fourth name respectively.

Hence, If the firm liquidates, Securities Investor Protection Corporation covers four accounts.

User Mark Fellner
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