Net Capital Requirements Flashcards
A broker-dealer that makes a market in NMS securities must maintain a minimum net capital of
A broker-dealer that makes markets and effects transactions for its own account is required to maintain a minimum net capital of $100,000
A broker-dealer that engages solely in the sale of redeemable investment company shares on a subscription-way basis, and that does not hold funds or securities of customers, is required to maintain a minimum net capital of
$5,000
A broker-dealer that is an executing firm in a prime-brokerage arrangement must maintain a minimum net capital of
A broker-dealer that is an executing firm in a prime-brokerage arrangement must maintain a minimum of $1,000,000 in net capital.
A prime broker must maintain a minimum net capital of
1,500,000.
A broker-dealer that effects transactions for its own account is required to maintain a minimum net capital of
$100,000
Carrying Firm - carries customer accounts andreceives or holds funds and securities
$250,000
A qualified block positioner or a broker-dealer that’s an executing firm in a prime brokerage agreement
$1,000,000
Market maker - Acts as a dealer; (firm that executes more than 10 transactions per year for its own investment account)
$100,000
Firm-Commitment-Underwriter
$100,000
Introducing Firm - Dealer that receives customer securities for immediate delivery to a clearing firm
$50,000
Introducing Firm - Introduce accounts on a fully disclosed basis to another firm and doesn’t receive customer funds or securities
$5,000
