Series 28: Aggregate Indebtedness

Aggregate Indebtedness

If a broker-dealer finds its aggregate indebtedness to be in excess of 1,200% of its net capital, it must send notice within 24 hours. Twenty-four-hour notice is also required if a computation shows one of the following:

• • The net capital (determined by the alternative standard) to be less than 5% of the broker-dealer’s aggregate debit items.
• • The total net capital