Series 99: 2.3.1.3 Non-Allowable Assets

Taken from our Series 99 Top-off Online Guide

2.3.1.3  Non-Allowable Assets

A firm’s assets include cash, securities, property, inventory, and office equipment. Liquid assets are assets that can quickly be converted into cash. The securities a firm owns are a liquid asset. So are the securities a brokerage holds on behalf of a customer, just as the cash acquired from a bank loan is a liquid asset.

Non-allowable assets are illiquid assets, assets that cannot be quickly sold at fair market value. These include fixed assets, unsecured receivables, and assets that are unlikely to be collect

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