In Calculating the Net Capital for a Securities Firms, Which

question 68

Multiple Choice

In calculating the net capital for a securities firms, which of the following is NOT an adjustment to the book value of net worth?

• A)The market value of net worth is calculated on a day-to-day basis.
• B)A series of adjustments are made to reflect unrealized profits and losses, subordinated liabilities, deferred taxes, options, and futures.
• C)The amount of securities that cannot be publicly sold are subtracted.
• D)All assets not readily converted into cash are subtracted.
• E)Haircuts to reflect potential market value fluctuations in asset values are deducted.

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Definitions:

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