is my money in E-Trade (or any stock brokerage) safe?

[serendipity1276]

I know that let's say, I have $150,000 cash deposited in a bank, and if that bank goes BK, only $100,000 is insured by the federal government (FDIC). The other $50,000 can likely be lost. So the safe thing to do is deposit $75,000 cash each in 2 separate banks.

Now, the same question goes to E-Trade (or any stock brokerage).

Question #1:

If I have a lot of cash in E-Trade stock account, should I be spreading that cash out by opening other accounts at, let's say, Schwab, Scottrade, etc? By the way, how much am I protected should my stock brokerage go BK?

Question #2:

Let's say I have $300,000 cash in my E-Trade stock account. Then, I used all of my $300,000 cash and bought shares of CSCO, TXN, etc. So I have no more money left in my E-Trade account. Then, should E-Trade go BK, what happens to all of my shares of CSCO and TXN?

Thanks in advance.

[IIC]

I know that let's say, I have $150,000 cash deposited in a bank, and if that bank goes BK, only $100,000 is insured by the federal government (FDIC). The other $50,000 can likely be lost. So the safe thing to do is deposit $75,000 cash each in 2 separate banks.

Now, the same question goes to E-Trade (or any stock brokerage).

Question #1:

If I have a lot of cash in E-Trade stock account, should I be spreading that cash out by opening other accounts at, let's say, Schwab, Scottrade, etc? By the way, how much am I protected should my stock brokerage go BK?

Question #2:

Let's say I have $300,000 cash in my E-Trade stock account. Then, I used all of my $300,000 cash and bought shares of CSCO, TXN, etc. So I have no more money left in my E-Trade account. Then, should E-Trade go BK, what happens to all of my shares of CSCO and TXN?

Thanks in advance.

You should find the answers here: http://www.sipc.org/

...Doug(IIC)



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