I have stocks, bonds and cash with a broker.  I do not have a stock
certificate or a bond certificate to clip coupons from or etc., just
my broker's statement.  What happens if the broker goes belly-up like
Enron?

Dear Beachbum-ga

Thank you for your very interesting question regarding potential 
problems with your broker.

According to the National Association of Securities Dealers(NASD)Your
investments with a broker are held in “Street Name” which means that
your securities are held in the name of a broker on behalf of a
customer. This arrangement allows shares to be transferred easily. If
the investments were registered in the customer's name rather than the
broker's name, physical certificates would need to be transferred.

NASD Glossry:
http://www.nasdr.com/glossary/s.asp

The answer below is from the Securities and Exchange
Commission(SEC).SEC's mission is to protect investors and maintain the
integrity of the securities markets.

"If your brokerage firm goes out of business and is a member of the
Securities Investor Protection Corporation (SIPC), then your cash and
securities held by the brokerage firm may be protected up to $500,000,
including a $100,000 limit for cash. Some firms obtain private
insurance policies to provide protection beyond SIPC limits."

“Without SIPC, investors at financially troubled brokerage firms might
lose their securities or money forever or wait for years while their
assets are tied up in court.”

“When a brokerage firm fails, SIPC usually asks a federal court to
appoint a trustee to liquidate the firm and protect its customers.
With smaller brokerage firm failures, SIPC sometimes deals directly
with customers. SIPC aids most customers of failed brokerage firms.”

Among the investments that are ineligible for SIPC protection are
commodity futures contracts and currency, as well as investment
contracts (such as limited partnerships) and fixed annuity contracts
that are not registered with the U.S. Securities and Exchange
Commission under the Securities Act of 1933.

You may wish to check with your broker regarding his SIPC membership
as well
as any other insurance policies they may carry.

"Most types of securities, such as stocks, bonds, and mutual funds,
are covered. SIPC does not protect you against losses caused by a
decline in the market value of your securities. Also, SIPC does not
provide protection for investment contracts not registered with the
SEC."

You can learn more about how SIPC operates and the protections SIPC
provides to brokerage customers by visiting SIPC's website. You can
also search SIPC's Membership Database or contact its Membership
Department at the address below to find out whether a firm is a member
of

If have been the victim of your broker's bankruptcy please contact
SIPC Claim center directly at:
http://www.sipc.org/usinghelpcenter.html

National Association of Securities Dealers(NASD)site:
http://www.nasdr.com/default.asp

Information about SIPC:

Securities Investor Protection Corporation
805 15th Street, NW
Suite 800 
Washington, D.C. 20005-2207
phone: (202) 371-8300 
Web site- http://www.sipc.org/

SIPC mission statement:
http://www.sipc.org/sipcmission.html

SPIC Claim Help Center:
http://www.sipc.org/usinghelpcenter.html

Securities and Exchange Commission(SEC)Web site:
http://www.sec.gov/index.htm

Answer to your question from Securities and Exchange Commission(SEC)
site:
http://sec.broaddaylight.com/sec/FAQ_7_59.shtm

I hope I have been able to answer your question feel free to request
further clarification(s).


Search terms used:
Stock Brokers
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Thank you
seeker

I don't understand the "choose your own price" feature.  If I had said
$50.00 what would I have gotten?