How safe are brokerage firms?

Question

I have stock in Wachovia,Merill Lynch,and Bank of America.If these banks go under are my investments like stocks and bonds safe?

Answer 1

They're as safe as any other stock in a major corporation.

Most major brokerage firms are in good shape financially, the ones that ran into problems were those that were positioning mortgage backed notes.

Merrill Lynch is not a bank, it is a registered broker/dealer, however it is among the largest in the industry and one of the strongest financially.

Your investment are safe, you must remember there are bull markets and there are bear markets.  At the present time, bear markets come and go as well as bull markets.  

Markets go up and down they don't go up OR down.