How am I protected if Stash ever goes out of business?
That’s because your investments are held in a federally regulated broker-dealer called Apex Clearing Corporation. This company acts as a custodian for all the investments Stash users purchase. Apex is regulated by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), an agency called the Securities Investor Protection Corporation (SIPC), which together protect your investments against fraud and the potential bankruptcy of the company holding your investments.
In fact, SIPC would return up to $250,000 in cash and up to $500,000 for non-cash investments such as stocks and ETFs in the event of fraud or bankruptcy.
It’s important to keep in mind, however, SIPC does not protect your investments from market value changes.
Still not sure about Stash?
If you’d rather hear more about Stash from a third party source, check out our coverage in major publications.
- Is It Safe to Get Excited About Investing Again? By Bloomberg News
- How to get started investing…for $5 by CNN Money
- Stash raises $40 million Series C to make Investing more approachable by TechCrunch
Q. Is my money safe?
Encryption When you use Stash, your information is encrypted and stored on secure servers. Custodial holding Your funds and securities are held by our custody and clearing partner, Apex Clearing Corporation. At Apex, your investments are protected up to a maximum of $500,000 total, including $250,000 in cash balances through the Securities Investor Protection Corporation…
Q. Will Stash tell me when to sell my stock shares?
You will be able to sell your shares of stock in the same way that you sell shares of an ETF today. For guidance on how to judge the performance of a company, we recommend that you consult all available resources on learn.stashinvest.com.
Q. What happens to my shares if a stock splits?
A stock split is similar to taking a $100 bill and splitting it into two $50 bills (or five $20 bills). The number of bills you hold increases, but the overall value of your money remains the same. If a stock that you own splits, the number of shares of stock on the market (or…
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