Are stocks purchased and held through ETRADE in jeopardy if they go bankrupt?

Question

I only have a trading account, no banking.

Answer 1

No.

The shares are probably held in "street name" -- but should not be listed as an asset of the E*Trade itself.

Also, SIPC (the brokerage version of FDIC) helps protect your assets. ($500,000 per client, $100,000 of which can be cash.) E*Trade may also have taken out additional re-insurance to supplement SIPC.

http://www.sipc.org/how/brochure.cfm

Answer 2

No, the securities you own are yours. Etrade is just the holding company. They cannot legally get a hold of your securities. If they go bankrupt (and the analyst said it was only a 15% chance) then some other brokerage company (like Schwaub) will pick up their holdings and then they will be your brokerage firm. Your money is also insured by the government up to $100k, so you should be fine.

Answer 3

No, the account is insured through the Federal Government up to $500,000 of which there is a separate limit of $100,000 for cash deposits. Further, they are well capitalized and do not appear in danger of failure.

Answer 4

The FDIC covers economic corporation debts. there's a distinctive yet comparable coverage for credit Unions. A Etrade account is extra like a brokage account which i do no longer think of are insured.

Answer 5

Generally your funds are safe..Some type of money in your trading account is secure, others are not (for instance money market)

but there are too much ifs and buts to answer the question completely here. I found useful information on this site which will help answer your question

http://wikidas.com/index.php?title=Are_funds_in_US_brokerage_accounts_secure%3F

Answer 6

No. (If you have less than $500,000.00 USD)