Are the shares that I own via my broker under my name?

Question

Are shares under my name if I purchased them via my broker?
What if my broker goes out of business? That should have no effect on my shares because I own those shares. They are already bought and paid for, right?
The country is USA. The broker is Fidelity.

Bob Baerker · Answer

When you own stocks or bonds in a brokerage account, they are held in "street name".  IOW, the name that appears on the security  is that of the broker  but you retain ownership rights. This facilitates speedy trading and reduces trading costs.
SIPC protection is $500,000, which includes a $250,000 limit for cash. SIPC protects the custody function of the broker dealer so if your broker goes out of business, your securities are safe.
SIPC does not protect you from your securities dropping in price nor does it protect you from receiving bad advice from a broker.

Are the shares that I own via my broker under my name?

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