Larry recently opened a brokerage account with a small firm located in Colorado. He opened the account with $45,000, which was held in a cash account at the firm. Earlier this year, he purchased $5,000 in stock. The price has fallen and the stock is now worth $1,000. Early today Larry learned that the brokerage firm went out of business. Larry is panicked. Help Larry understand what will happen by choosing the correct statement from those listed.

Larry need not worry because his entire $45,000 loss is covered by FDIC.

Larry will lose 100% of everything held in the brokerage account.

Larry will get back $40,000 in cash, $1,000 in stock, and $4,000 in stock losses from SIPC.

Larry will get back $40,000 in cash and $1,000 in stock from SIPC.