Finra
What is the maximum SIPC protection for securities and cash combined in a customer account?
SIPC provides maximum protection of $500,000 per customer, including a $250,000 limit specifically for cash. If a customer has $400,000 in securities and $150,000 in cash, the cash would be protected to $250,000, and sec
Complete Analysis & Legal Rationale
SIPC provides maximum protection of $500,000 per customer, including a $250,000 limit specifically for cash. If a customer has $400,000 in securities and $150,000 in cash, the cash would be protected to $250,000, and securities would be fully protected within the $500,000 total limit.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: SIPC protection for customers of failed brokerage firms (verify current coverage limits/details).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.