If you buy stock in margin account, broker can lend out. Is that position SIPC safe?

Discussion in 'Retail Brokers' started by jackpearson, Nov 11, 2011.

  1. Stock held in margin accounts can be loaned out to other people by your broker.

    Let's say your broker fails & comingles stuff like with MF Global.

    Is your entire account SIPC protected?

    or, because it's a margin account, the positions could be vulnerable.
  2. ASE1245


    Any positions held in a margin account are held in street name, not your name. SIPC protects the value of the cash and securities, not the actual securities up to the SIPC limits.
  3. so does the SIPC protect it?

    if they protect the value of the stock, what price do they use for computing its value?
  4. ASE1245