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As an agent, which of the following statements about the Securities Investor Protection Corporation (SIPC) can you legitimately make to your client?
Correct Answer: B
Explanation The statement that you can legitimately make about the SIPC to your client is that it was established to restore funds to investors when the brokerage firm they have been using is bankrupt or in financial distress. The SIPC does not insure investors against losses in the stock and bond markets like the FDIC does bank deposits, and it does not combat fraud.