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.
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Related terms:
Primary Dealer, Rule 15c3-1, risk-weighted asset, working capital requirement
'capital requirement' appears in these other terms:
net capital requirement
'capital requirement' appears in the definitions of these other terms on BusinessDictionary.com:
financial attributes
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