Series 27: Debt-Equity Requirements

Taken from our Series 27 Online Guide

Debt-Equity Requirements

A broker-dealer’s debt-equity total is the sum of its:

  • Outstanding principal of satisfactory subordination agreements
  • Contributed capital
  • Retained earnings and
  • Unrealized profit and loss

No broker-dealer may permit the outstanding principal of its satisfactory subordination agreements to exceed 70% of its debt-equity total

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