Which of the following is NOT typically covered by the Securities Investor Protection Corporation?

The Securities Investor Protection Corporation (SIPC) provides a safety net for customers of member brokerage firms, primarily protecting against the loss of cash and securities held by a firm in the event of its bankruptcy or other failures. The correct answer, which indicates an aspect not covered by SIPC, is related to investment losses in the stock market.

Investment losses occur when the value of investments decreases due to market fluctuations, which is a common risk inherent in investing. SIPC does not protect against these types of losses, as their mandate is focused on protecting customers from the loss of their cash and securities when a brokerage fails, not on the market risks involved in investing.

Cash deposits are covered under SIPC up to certain limits, as fraudulent activities can result in the loss of funds or securities that SIPC seeks to mitigate. Additionally, should a member firm declare bankruptcy, the SIPC steps in to help recover any lost assets held at that firm. Therefore, while SIPC offers valuable protections for brokerage customers, it does not intervene in the natural market-related losses that investors might experience.