Which characteristics do products offered through a broker-dealer NOT have?

Products offered through a broker-dealer typically don't carry FDIC insurance. FDIC insurance is specifically designed to protect depositors in member banks and covers certain types of deposit accounts, such as savings accounts, checking accounts, and certificates of deposit (CDs).

In contrast, products sold through broker-dealers, such as stocks, bonds, mutual funds, and other investment vehicles, are not considered deposits. Instead, they come with varying degrees of investment risk, relying largely on the performance of the underlying assets or markets. Because these products are investments, they do not fall under the protections afforded by the FDIC.

Additionally, broker-dealer products are generally not obligations of the bank itself, meaning that the bank is not liable for losses on these investments in the same way that it is for insured deposits. Furthermore, while some financial products could be insured under SIPC (Securities Investor Protection Corporation), this is different from FDIC insurance and does not provide the same type of protection for investors. Understanding these distinctions is crucial for recognizing the nature of the risks associated with products that broker-dealers offer.