Exercise
Answer True or False
- 1. True or false. If a firm discovers that its net capital is less than 100% of its required minimum, it must notify FINRA and the principal and regional offices of the SEC within 24 hours of its discovery.
- 2. True or false. Carrying firms must have at least 250,000 in net capital.
- 3. True or false. Dealers are required to maintain a $100,000 net capital.
- 4. True or false. For market makers, if the bid price for a security is $10 or less, the firm must carry $1,000 in net capital per security.
- 5. True or false. A member firm that carries customer accounts or clears transactions may not expand its business when a net capital deficiency exists for more than 15 consecutive business days.
- 6. True or false. The alternative net capital requirement is typically preferred by smaller firms
- 7. True or false. Under the alternative net capital requirement, a firm