What type of organization is the SPIC?

The correct answer is that the SPIC, which stands for Securities Investor Protection Corporation, is classified as a non-profit corporation. This organization was created by an act of Congress in 1970, primarily to protect investors in the event that a broker-dealer fails. It provides a safety net for individuals by stepping in to reclaim missing securities and cash when a member brokerage fails financially.

As a non-profit corporation, the SPIC does not operate for the purpose of generating profits for shareholders, but instead focuses on its mission of investor protection. It is funded through assessments on member firms and is designed to help maintain public confidence in the U.S. financial markets by ensuring that customers do not lose their assets due to the bankruptcy of a brokerage firm.

In contrast to options such as government agency or private corporation, the SPIC does not have governmental powers nor does it operate for profit, which distinguishes its role and structure from these other organizations. Furthermore, it is not classified as an international organization since its operations and protections are specific to the United States.