capital requirement

Definition

The amount of money a business needs for its normal operations. Also, the amount of cash and easily liquidated assets that a broker/dealer or bank needs to meet SEC regulations, usually expressed as a proportion of total liabilities. In general, the kind of assets that can make up the broker-dealer's capital requirement are strictly defined.

Use capital requirement in a sentence

The capital requirement was important to us and we really loved being able to work with it and make things work.

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You should try and figure out how much the capital requirement will be and decide if you can get your hands on it.

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The aluminum manufacturing plant didn't only have very specific energy requirements, but boasted some rather strict capital requirements as well.

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Rule 15c3-1 regulatory accounting principles (RAP)