FT MarketWatch

Net capital ratio

SEC requirement that all broker/dealers maintain a Ratio of no more than 15:1 between indebtedness and liquid Asset. Indebtedness includes Money owed to the firm, margin Loan, and commitments to Purchase securities. Liquid assets include Cash and assets which are easily converted to cash. The purpose of this rule is to make sure that the broker/dealer will be able to maintain ITS operations and not adversely affect the Capital markets even if it suffers a large amount of bad Debt. called net Capital rule.

Related Terms: 27 Asset, Broker, Capital, Cash, Call, Cap, Capital market, CLU, Commitment, Debt, Dealer, Deal, ECU, Inc., ITS, Liquid, Loan, Margin, Margin loan, Money, Market, Net, Owe, Purchase, Quid, Ratio, SEC
Other Related Pages: Category: Investor_Relations Starting With: N
Semi Related Terms: 858 CLICK HERE TO VIEW
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