What federal agency insures your stocks in the stock market?
1. The Federal Deposit Insurance Corporation (FDIC)
2. No federal agency insures stocks
3. The Securities and Exchange Commission (SEC)
4. The U.S. Department of the Treasury
Answer:
2. No federal agency insures stocks
Stocks are not insured against loss by any government agency and investment returns ultimately rise or fall based on market performance. The U.S. Treasury manages federal finances, while regulators like the SEC oversee fair practices and the FDIC protects bank deposits. While there is no insurance for stock value loss, the SIPC Securities Investor Protection Corporation protects assets up to a certain amount if the brokerage itself goes bankrupt.
