Net Capital Requirement
Financial & Investment Dictionary:
Net Capital Requirement
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net capital requirement
Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; ...
Net capital requirement
Definition: [crh] SEC requirement that member firms and nonmember securities broker-Definition: aler"dealers maintain a maximum ratio of indebtedness to liquid capital of 15 to 1.
Net capital requirement
SEC requirement that member firms and nonmember securities broker-dealers maintain a maximum ratio of indebtedness to liquid capital of 15 to 1.
Net Capital Requirement - Securities Exchange Commission requirement that broker-dealers in securities maintain a maximum 15 to 1 ratio of indebtedness to cash and liquid assets.
The NASD requires member brokers to register and conducts examinations for compliance with net capital requirements and other regulations. It also conducts market surveillance of the over-the-counter (OTC) securities market.
RULE 15c3-1 " The SEC rule which establishes minimum net capital requirements for brokers/dealers.
The current book value of an asset or liability; that is, its original book value net of any accounting adjustments such as depreciation.
Net capital requirement ...
a NASD-member firm who is responsible for the financial reports of the firm, keeping of books and records, supervision of back office operations, and compliance with financial responsibility rules, including compliance with net capital requirements.
 See also: Member Firm, Banks, Broker-dealer, Limit Order, Expense
  
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