Question

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:

Answer 1

Answer:

Each account separately.

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.