The Securities Investor Protection Corporation $($SIPC$)$ was established to:

oversee the liquidation of brokerage firms, and insure an investor's accounts to a maximum value of $$500,000$ in case of bankruptcy by the broker.

protect investors from corporate insider trading, and insure their accounts for $$500,000$ in case corporate fraud caused a company to go bankrupt.

cover the total market loss on an investor's brokerage account in case of the bankruptcy of the broker.

create an insurance pool for brokerage firms, so that if one firm went bankrupt, all investor losses would be covered out of the insurance pool.