The capital requirements for broker-dealers include a net worth market value to assets ratio of at least 2 percent.

Question

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The Securities and Exchange Commission (SEC) imposes a net capital rule that requires broker-dealers to maintain a minimum net worth based on a market value to assets ratio of at least 2 percent. This means that for every $100 of assets, the broker-dealer must have a minimum net worth of $2.

The Capital Requirements for Broker-Dealers Include a Net Worth Market