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| Definitions by InvestorWords.com |
| What is...? |
| net capital ratio SEC requirement that all broker/dealers maintain a ratio of no more than 15:1 between indebtedness and liquid assets. Indebtedness includes money owed to the firm, margin loans, and commitments to purchase securities. Liquid assets include cash and assets which are easily converted to cash. also called net capital rule. see also ratio. |
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