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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
Semi Related Terms: 858 CLICK HERE TO VIEW
10-Q ,
10-K ,
12b-1 funds ,
30-day wash rule ,
Active asset ,
Alternative assets ,
Asset ,
Asset/equity ratio ,
Available assets ,
Asset management account ,
Accrual of discount ,
Accrued market discount ,
Amortization of premium ,
Asset-backed security ,
Asset swap ,
At par ,
All or any part ,
At best ,
At call ,
Active money ,
All-risks coverage ,
At risk ,
Asset acquisition ,
Asset class ,
Asset financing ,
Add-on service ,
Abstract of title ,
Action to quiet title ,
As is ,
Assignment to creditors ,
Attorney in fact ,
Asset-based finance ,
Asset-based lending ,
Asset conversion loan ,
Assignment of mortgage ,
A shares ,
Asset allocation fund ,
Assets under management ,
Asset turnover ,
Average price per share ,
At the money ,
Across the board ,
Additional paid-in capital ,
Ad valorem ,
Amount recognized ,
Active market ,
Against the box ,
At the bell ,
At the close ,
At the figure ,
At the full ,
At the market ,
At the opening order ,
Auction market ,
Automated Pricing and Reporting System ,
Away from the market ,
Below the line ,
Books of final entry ,
Books of original entry ,
Book value per share ,
Banking Act of 1933 ,
Barren money ,
Bid-to-cover ratio ,
Bond market ,
Bureau of Public Debt ,
Best-execution requirement ,
Broker ,
Brokerage firm ,
Broker loan ,
Brought over the wall ,
Buying on margin ,
Buy on close ,
Buy on opening ,
Buy the book ,
Broad money ,
Basic earnings per share ,
Balance of payments ,
Bear market ,
Board of Governors ,
Bulldog market ,
Break-even analysis ,
Breaking the syndicate ,
Bill of exchange ,
Bill of sale ,
Breach of trust ,
By the book ,
Balloon loan ,
Bank term loan ,
Bridge loan ,
Broker loan rate ,
B shares ,
Buy and write ,
Bad title ,
Break-even tax rate ,
Breadth-of-market theory ,
Beat the gun ,
Bull market ,
Capital ,
Capital appreciation ,
Capital asset ,
Capital efficiency ,
Capital expenditure ,
Capital growth ,
Capital investment ,
Capital liability ,
Capital loss ,
Capital resource ,
Cash ,
Cash asset ratio ,
Cash basis ,
Cash budget ,
Cash control ,
Cash conversion cycle ,
Cash cycle ,
Cash earnings ,
Cash equivalence ,
Cash journal ,
Cash ratio ,
Collection ratio ,
Contribution margin ,
Cost Of Goods Sold ,
Cost of sales ,
Current debt ,
Cash reserves ,
Central assets account ,
Call ,
Call date ,
Called away ,
Called bond ,
Call price ,
Call protection ,
Call risk ,
Cap ,
Capital market ,
Capital structure ,
Cash equivalents ,
Certificate of Participation ,
Collaterized Loan Obligation ,
Committee on Uniform Securities Identification Procedures ,
Conversion ratio ,
Convertible debt ,
Current market value ,
Call money rate ,
Cash account ,
Clearing firm ,
Code of procedure ,
Contra broker ,
Contract broker ,
Customer protection rule ,
Cash dividend ,
Capitalization of income ,
Cap rate ,
Capital account ,
Capital consumption allowance ,
Capital formation ,
Cost of Living Adjustment ,
Cost-of-living index ,
Council of Economic Advisers ,
Cash and carry trade ,
Cash commodity ,
Cash market ,
Cash price ,
Cash settlement ,
Chasing the market ,
Cheapest to deliver ,
Chicago Board of Trade ,
Contract market ,
Cash surrender value ,
Cash value ,
Cash value life insurance policy ,
Cash withdrawal ,
CLU ,
Cost-of-living rider ,
Capital budget ,
Capital gains distribution ,
Certificate of stock ,
Cost of carry ,
Certificate of title ,
Commitment ,
Cancellation of debt ,
Cash advance ,
Cash collateral ,
Cash credit ,
Cash-out refinancing ,
Certificate of Claim ,
Character loan ,
Classified loan ,
Commitment fee ,
Commitment letter ,
Conforming loan ,
Consolidation loan ,
Consumer debt ,
Cost of debt capital ,
Cost of funds ,
Capital appreciation fund ,
C shares ,
Call option ,
Call ratio backspread ,
Call swaption ,
Class of options ,
Close to the money ,
Covered call ,
Cash Against Documents ,
Certificate of Occupancy ,
Cloud on title ,
Cash-balance plan ,
Cash or Deferred Arrangement ,
Capital Asset Pricing Model ,
Capital commitment ,
Cash sale ,
Choice market ,
Class A Shares ,
Class B Shares ,
Contributed capital ,
Crash of 1929 ,
Crash of 1987 ,
Capital gains tax ,
Capital loss carryover ,
Child and dependent care credit ,
Coefficient of determination ,
Cup and handle ,
Cash buying ,
Cash delivery ,
Certificate of delivery ,
Close a position ,
Close market ,
Closing purchase ,
Continuous market ,
Cornering the market ,
Curbs in ,
Corporate venture capital ,
Debt service coverage ,
Deficit net worth ,
Dealer bank ,
Deposit in transit ,
Date of issue ,
Date of payment ,
Dealer market ,
Debt ,
Debt capital ,
Debt-equity swap ,
Debt financing ,
Debt limit ,
Debt market ,
Debt shelf ,
Drawn securities ,
Day loan ,
Dealer ,
Deep discount broker ,
Discount broker ,
Division of Enforcement ,
Division of Investment Management ,
Division of Market Regulation ,
Do Not Reduce ,
Date of record ,
Dividend in arrears ,
Dividend payout ratio ,
Dividend requirement ,
Desk (the) ,
Division of labor ,
Deal stock ,
Discounted Cash Flow Analysis ,
De-escalation clause ,
De facto ,
Doing business as ,
Durable Power of Attorney ,
Date of maturity ,
Debt consolidation ,
Debtor in possession ,
Debtor-in-possession financing ,
Debt retirement ,
Debt service ,
Deed of Release ,
Deed of Trust ,
Demand loan ,
Discharge of bankruptcy ,
Discharge of lien ,
Discount loan ,
Double net lease ,
Due-on-sale clause ,
Dual-purpose fund ,
Deep in the money ,
Deep out of the money ,
Deed of Surrender ,
Department of Housing and Urban Development ,
Dogs of the Dow ,
Deep market ,
Depth of market ,
Double auction market ,
Deal ,
Deal flow ,
Earning asset ,
EBITDA margin ,
Effective debt ,
Efficiency ratio ,
Eurodollar certificate of deposit ,
Escrowed to maturity ,
External market ,
Either-or order ,
ECU ,
Extended broad money ,
E-mini ,
Exchange of spot ,
Exchange versus cash ,
Ex-pit transaction ,
Emerging market ,
Employee Stock Purchase Plan ,
Ex-all ,
Exchange ratio ,
Evergreen loan ,
Exercise ratio ,
Employee Retirement Income Security Act of 1974 ,
Exclusion ratio ,
Equity capital ,
Even lot ,
Even spread ,
Even up ,
Financial asset ,
Financial capital ,
First In First Out ,
Fixed asset ,
Fixed-charge coverage ratio ,
Form 10-Q ,
Federal Savings and Loan Association ,
Face-amount certificate ,
Federal Home Loan Mortgage Corporation ,
First call date ,
Flight to quality ,
Flow of funds ,
Federal Call ,
Fill or kill ,
Firm quotation ,
Floor broker ,
Front-ending an order ,
Fiat money ,
Forward deal ,
Forward P/E ,
Fully diluted earnings per share ,
Factors of production ,
Favorable balance of trade ,
Federal Reserve requirement ,
Foreign Debt ,
Free market ,
Free market price ,
Face amount ,
Fair market value ,
Form 8-K ,
Form S-1 ,
Firm commitment offering ,
Friends and family offering ,
Fair Debt Collection Practices Act ,
FHA Loan ,
Firm commitment lending ,
Fixed-rate loan ,
Floor loan ,
Full faith and credit ,
Funded debt ,
Family of funds ,
Fund of funds ,
Free and clear ,
Free right of exchange ,
Federal ID Number ,
Forward commitment ,
Fourth market ,
Gross margin ,
Gross profit margin ,
Government securities ,
Government Securities Clearing Corporation ,
General Securities Representative Examination ,
G-7 ,
General Agreement on Tariffs and Trade ,
Gross National Debt ,
G-8 ,
Growth and income fund ,
Gather in the stops ,
Graveyard market ,
Hidden asset ,
Hart-Scott-Rodino Act of 1976 ,
Hit the bid ,
House call ,
House of issue ,
Hedge ratio ,
Health Insurance Portability and Accountability Act ,
Holder in due course ,
Hang out loan ,
High-ratio mortgage ,
Home equity debt ,
Home equity line of credit ,
Home equity loan ,
HUD-1 statement ,
Housing Market Index ,
Head and shoulders ,
Hammering the market ,
Held at the opening ,
Holding the market ,
Inactive asset ,
Intangible asset ,
In escrow ,
International Securities Identification Number ,
Invested capital ,
Independent broker ,
In-house ,
Introducing broker ,
Investment Advisor Act of 1940 ,
Investment Company Act of 1940 ,
In line ,
Inefficient market ,
Inverted market ,
Internal market ,
Insurance broker ,
Inside market ,
Insider Trading sanctions Act of 1984 ,
Internal Rate of Return ,
Indication of interest ,
Inc. ,
In intestacy ,
Indexed loan ,
Installment loan ,
Interest-only loan ,
Interest rate cap ,
In play ,
In-process research and development ,
I/O strip ,
Income replacement ratio ,
In-service withdrawal ,
Income exclusion rule ,
Imbalance of orders ,
Imperfect market ,
In and out ,
In sympathy ,
In the tank ,
ITS ,
Invisible venture capital ,
Jointly and severally ,
Jumping the gun ,
Joint will ,
Joint and several liability ,
Jumbo loan ,
Junior debt ,
Joint and survivor annuity ,
Last In First Out ,
Liquidity ratio ,
Lender of last resort ,
Law of one price ,
Lending at a rate ,
Limit-on-close order ,
Long Market Value ,
Lawful money ,
Law of demand ,
Law of supply ,
London International Financial Futures and Options Exchange ,
Liquid ,
Loan stock ,
Long-term debt ,
Long-Term Equity Anticipation Securities ,
Letter of comment ,
Living will ,
Legal assets ,
Lifetime cap ,
Line of credit ,
Loan ,
Loan note ,
Loan schedule ,
Loan sharking ,
Loan-to-cost ,
Loan-to-value ,
Loan value ,
Loan-value ratio ,
Lock-in ,
Lease-purchase agreement ,
Large cap ,
Leading the market ,
Locked in ,
Long-term gain or loss ,
Level I quotes ,
Liquid market ,
Locked market ,
Modified cash basis ,
Money center bank ,
Money order ,
Market basket ,
Market capitalization ,
Market conversion price ,
Mezzanine debt ,
Maintenance call ,
Make a market ,
Margin ,
Margin account ,
Margin agreement ,
Margin buying ,
Margin call ,
Margin loan ,
Margin rate ,
Market if touched order ,
Market letter ,
Market maker ,
Market maker spread ,
Market on close order ,
Market order ,
Mark-to-market ,
Member firm ,
Money management ,
Medium of exchange ,
Money ,
Marginal propensity to consume ,
Market economy ,
Monetizing debt ,
Make whole provision ,
Market rate ,
Money at call ,
Money factor ,
Morning loan ,
Mortgage broker ,
Mortgage debt ,
Marketable securities ,
Market cap ,
Medium-cap ,
Micro cap ,
Mid cap ,
Market neutral ,
Market portfolio ,
Market timer ,
Market timing ,
Market analysis ,
Market ,
Market inefficiency ,
Market opening ,
Market return ,
Market-share weighted index ,
Market surveillance ,
Market-value weighted index ,
Market Volatility Index ,
Mixed market ,
Money flow ,
Net ,
Net book value ,
Net current assets ,
Net income ,
Net income multiplier ,
Net interest margin ,
Net investment ,
Net margin ,
Net Operating Income ,
Net operating margin ,
Net profit ,
Net profit margin ,
Net quick assets ,
Net sales ,
Net surplus ,
Net tangible assets ,
Non-cash expense ,
Noncurrent asset ,
Non-financial asset ,
Near money ,
Negotiable certificate of deposit ,
Negotiable Order of Withdrawal ,
National Market System ,
Nine-Bond Rule ,
Notice of Sale ,
National Association of Securities Dealers ,
National Association of Securities Dealers Automated Quotations system ,
National Securities Clearing Corporation ,
National Securities Trade Association ,
Net capital ratio ,
No limit order ,
Nonmember firm ,
No quote ,
Nominal asset ,
National Debt ,
Normal market ,
No-Fault ,
Net Asset Value ,
Net estate ,
No-Action Letter ,
Null and void ,
No-lien affidavit ,
Non-conforming loan ,
Nonperforming asset ,
Nonrecourse debt ,
Note loan ,
Notice of Default ,
Notional principal amount ,
No-load ,
Naked call ,
National Association of Real Estate Investment Trusts ,
Net lease ,
Nasdaq Small Cap Market ,
No-load stock ,
Nominal capital ,
Narrow market ,
National Market Advisory Board ,
Negotiated market ,
Net change ,
Net position ,
Net transaction ,
Net volume ,
No book ,
Off the books ,
One time charge ,
Operating cash flows ,
Operating margin ,
Other current assets ,
Overhead ratio ,
Office of Thrift Supervision ,
Out-of-favor ,
Over-the-Counter ,
On-floor order ,
Online broker ,
On margin ,
Or better ,
Outside broker ,
Operating profit margin ,
Open market operation ,
One-share one-vote rule ,
Opinion of title ,
On account ,
On-the-spot loan ,
Owe ,
Option margin ,
Out of the money ,
Old age, survivors, and disability insurance ,
Overlapping debt ,
On-balance volume ,
Odd lot buy/sell ratio ,
On close ,
One man picture ,
On open ,
On the opening ,
Open market ,
Operationally efficient market ,
Outside market ,
Permanent capital ,
Petty cash ,
Pooling of interests ,
Pre-tax profit margin ,
Profit and loss statement ,
Profit margin ,
Paper dealer ,
Payment-in-kind security ,
Preferred debt ,
Price Value of a Basis Point ,
Provisional call feature ,
Public purpose bond ,
Purchase ,
Primary Dealer ,
Prime broker ,
Public Securities Association ,
Purpose loan ,
Payout ratio ,
P&L ,
Primary earnings per share ,
Private debt ,
Physical market ,
Policy loan ,
Primary market ,
Per stirpes ,
Pour-over will ,
Power of Attorney ,
Partially amortized loan ,
Participation loan ,
Piggyback loan ,
Principal amount ,
Prioritization of debt ,
Purchase-money mortgage ,
Private Market Value ,
Privilege dealer ,
Purchase agreement ,
Plan asset ,
Paid-in capital ,
Paid-in surplus ,
Private Investment in Public Equity ,
Perfect capital market ,
Preservation of capital ,
Put ratio backspread ,
Point-and-figure chart ,
Profit ratio ,
Painting the tape ,
Plus tick rule ,
Put/call ratio ,
Quick assets ,
Quid ,
Real asset ,
Reports and Records ,
Return of capital ,
Return on Capital ,
Return on Invested Capital ,
Return on Total Assets ,
Regulation Q ,
Reserve ratio ,
Reserve requirement ,
Reading the tape ,
Regulation D ,
Regulation G ,
Regulation T ,
Regulation U ,
Round of funding ,
Rule 10b-6 ,
Rule 15c3-1 ,
Rule 19c3 ,
Rule 405 ,
Rule 415 ,
Rules of Fair Practice ,
Rate of exchange ,
Reciprocal of European terms ,
Ratio ,
Regulation A ,
Right of first refusal ,
Right of rescission ,
Right to Know ,
Recourse loan ,
Rescheduled loan ,
Revolving line of credit ,
Right of recourse ,
Rule of 78 ,
Ratio calendar combination ,
Ratio calendar spread ,
Ratio spread ,
Ratio write ,
Real estate broker ,
Right of redemption ,
Retirement Equity Act of 1984 ,
Ratio analysis ,
Return on Capital Employed ,
Rate of return ,
Real rate of return ,
Rule 13d ,
Risk capital ,
SEC filing ,
Selling, General and Administrative Expenses ,
SG&A ,
Stranded asset ,
Savings and Loan ,
Sight letter of credit ,
S&L ,
SEC ,
Secondary market ,
Securities and Exchange Commission ,
Series EE bond ,
Sovereign debt ,
Student Loan Marketing Association ,
SEC fee ,
Securities analyst ,
Securities Industry Association ,
Securities Investor Protection Corporation ,
Securities loan ,
Segregation of securities ,
Sell the book ,
Stock loan ,
Street broker ,
Standard of living ,
Spot market ,
Second-to-die insurance ,
Short interest ratio ,
Stock market ,
Severally but not jointly ,
Standby commitment ,
Statute of Limitations ,
Sale and leaseback ,
Satisfaction of debt ,
Secondary mortgage market ,
Secured loan ,
Securities lending ,
Security loan ,
Senior debt ,
Signature loan ,
Single-payment loan ,
Soft loan ,
Stafford loan ,
Standby loan commitment ,
Subordinated debt ,
Swing loan ,
Staggered board of directors ,
Selling the spread ,
Short market value ,
Small cap ,
Selling short against the box ,
Shorting against the box ,
Short purchase ,
Short sale rule ,
S Corporation ,
Short-term gain or loss ,
Subchapter M ,
Subchapter S Corporation ,
Schedule C ,
Securities Act of 1933 ,
Securities Acts Amendments of 1975 ,
Securities Exchange Act of 1934 ,
Securities fraud ,
Seek a market ,
Smart money ,
Specialist market ,
S&P phenomenon ,
Stop and reverse ,
Seed capital ,
Tangible asset ,
Tangible net worth ,
Total assets ,
T-Bill ,
Term to maturity ,
Take a position ,
Two-sided market ,
Two-way market ,
Trailing P/E ,
Tight money ,
Total asset turnover ,
Tenancy by the entirety ,
TED spread ,
Term loan ,
Triple net lease ,
Truth in Lending ,
Tenancy at will ,
Top hat plan ,
The Street ,
Timing the market ,
Taxpayer Relief Act of 1997 ,
Tax Reform Act of 1986 ,
Tax Reform Act of 1993 ,
Take a bath ,
Thin market ,
Third market ,
Tight market ,
Transparent market ,
U.S. Government Agency Security ,
U.S. Savings Bond ,
U.S. Treasury ,
U.S. Treasury Bill ,
U.S. Treasury Bond ,
U.S. Treasury Note ,
U.S. Treasury Securities ,
Underlying debt ,
Uniform Securities Act ,
Unsecured loan ,
Uncovered call ,
Unit of trade ,
Unit of trading ,
Variation margin ,
Variable ratio write ,
Variable ratio plan ,
Venture capital ,
Venture capital limited partnership ,
Working capital ,
Waiver of premium ,
Working capital loan ,
Wraparound loan ,
Widow-and-orphan stock ,
W-2 Form ,
Wash sale rule ,
W formation ,
Weak market ,
When, as, and if issued ,
Wide market ,
X or XD ,
Year-To-Date ,
Yankee bond market ,
Yield to call ,
Yield to maturity ,
Yield to worst ,
Y shares