Exercise

Answer true or false

1. 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. 2. True or false. Carrying firms must have at least $250,000 in net capital.
3. 3. True or false. Dealers are required to maintain $100,000 in net capital.
4. 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. 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. 6. True or false. The alternative net capital requirement is typically preferred by smaller firms.
7. 7. True or false. Under the alternative net capital requirement, a firm