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A bank, brokerage account, or index fund would have FDIC or SIPC insurance coverage.
by greyface- 6y ago
A bank, brokerage account, or index fund would have FDIC or SIPC insurance coverage.
- rootsudo 6y agoIt does not protect if the asset invested in goes down in value. FDIC is protection against the bank being insolvent. SIPC does not protect customers against losses from the rise and fall in the market value of investments. https://www.sipc.org/for-investors/what-sipc-protects https://www.sipc.org/for-investors/what-sipc-protects
- greyface- 6y agoThere's no disagreement here. FDIC/SIPC protect against insolvency. The context of this discussion is borrower credit risk, i.e., the risk that the borrower becomes insolvent.