Wall Street Bailout

[Susie924]

Not necessarily about the bailout but I have a question and there seems to be some savvy people here.

What exactly is SIPC insurance?

I know that brokerage accounts aren't covered by FDIC because if the stocks go down (like mine do) it's a risk that you take.

What happens if the brokerage just shuts the doors and therefore a person can't sell anything they have or in the case of a 401K or Simple IRA type of thing.

Is that when SIPC insurance is important?