Net-Capital Rules Law and Legal Definition
Net capital rules are basic financial-responsibility standards adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. It was enacted to regulate the ability of broker-dealers to meet their financial obligations to customers and other creditors. Under these rules, securities brokers are required to maintain a minimum level of capitalization and to maintain aggregate indebtedness at a level less than a specified multiple of the broker's net capital.
