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Simple English definitions for legal terms

net-capital rules

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A quick definition of net-capital rules:

Net-capital rules are basic financial-responsibility standards that securities brokers must follow. These rules require brokers to maintain a minimum level of capitalization and to keep their total debt below a certain level. The Securities and Exchange Commission created these rules to protect investors and ensure that brokers have enough money to cover their obligations.

A more thorough explanation:

Definition: Net-capital rules are basic financial-responsibility standards established by the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934. These rules require securities brokers to maintain a minimum level of capitalization and to keep their aggregate indebtedness below a specified multiple of their net capital.

Example: A securities broker has a net capital of $1 million and a specified multiple of 10. This means that the broker's aggregate indebtedness should not exceed $10 million. If the broker's aggregate indebtedness exceeds this limit, they may be in violation of the net-capital rules.

Explanation: The example illustrates how the net-capital rules work in practice. The SEC requires securities brokers to maintain a certain level of financial stability to ensure that they can meet their obligations to clients. By setting a minimum level of capitalization and limiting aggregate indebtedness, the SEC aims to protect investors from potential losses due to broker insolvency or other financial difficulties.

net book value | net-net-net lease

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Dkk
16:01
Commits to kys when I commit to kms the same day. What a crazy november 5th.
[] baddestbunny
16:02
kms isn't even a t50 you should r&r
does anyone ever think about how we have no idea who everyone else here is? like you guys dont know me at all thats so crazy cause i talked to you more than ppl irl today
i'm a hallucination
the hat man
HopefullyInLawSchool
16:03
isnt r&r a t50?
keep popping benadryls and ill stay online
law school chat roulette
[] baddestbunny
16:04
living out the plot of the movie unfriended in the yale invite-only webinar
You were only invited to round out the numbers anyway lol
Dkk
16:05
I'm too old to r&r, just gunna kms rn.
Dkk
16:05
Gotta get this show on the road.
Dkk
16:05
Lmfao
JumpySubsequentDolphin
16:05
washu stop emailing me while I’m waiting for a decision challenge
[] baddestbunny
16:05
I'm not in their webinar I just thought it would be a funny thing to have happen
[] baddestbunny
16:05
bc I have a sense of whimsy and imagination
Ah, youre a worm gorl'
shaquilleoatmeal
16:07
battle of the bunnies
How bout dat ASU wave
letsseehowitgoesnow
16:08
bunny hows it looking out there?
[] baddestbunny
16:08
I just think it's weird when a make a joke about everyone in the yale webinar being tortured by a malevolent spirit and someone says you only got invited to round out the numbers
why
go off queen
[] baddestbunny
16:09
which number am I rounding out? 5'4 women who deserve to be tortured?
someone invited to the yale webinar would get it
[] baddestbunny
16:10
if you don't get invited to the yale webinar canada sends you an email letting u know you qualify for MAID
what's that
Send MA ID
BulbasaurNoLikeCardio
16:16
LawHub blocking me from status checker, guess I ain't going to law school now
"Go touch grass" - Lawhub
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