Net Capital requirements for broker/dealers.

Not sure if this gives you any idea, but the last months copy of Institutional Investor ranks the top 100 firms buy consolidated capital and also gives figures for equity capital
(nb equity capital = consolidated capital - l-t debt)
Number 100 is CE Unterberg, Towbin - I have no idea who they are but there total equity capital is 15m.
I cannot see any prop firms on this list, so I presume they are all lower than this..

Firms that may interest:
McMahan Secs 60m
SWS (Southwest Secs) 293m
Ameritrade 400m
E-trade 507m
IB 931m
TD Group 2.6B
no 1 is ML at 23B equity capital
 
I"ve seen this a few times, and I love it.

Wait until we see the rest of the Accounting Industry come to terms with all the Arthur Andersen nonsense.

I thought it was really great when, out of the blue, the AICPA started spending zillions of dollars on advertising. When have we ever, ever, seen the "American Institute of Certified Public Accountants" pay for advertising as a lobbying group?

Anyway, we'll see if yesterday was simply a "bear rally" or not.
 
The balance sheet is worthless without a breakdown between trader's money and "owner's" capital. Then you need to know how much of the owner's (A Members) capital is cash versus assets such as leasehold improvements and computers and other depreciable assets.

For example a firm that claims to have 10 million in equity could have less cash up than a firm with 6 million in equity but no leases or computers on the books.
 
Originally posted by Speculator1929
The balance sheet is worthless without a breakdown between trader's money and "owner's" capital. Then you need to know how much of the owner's (A Members) capital is cash versus assets such as leasehold improvements and computers and other depreciable assets.

For example a firm that claims to have 10 million in equity could have less cash up than a firm with 6 million in equity but no leases or computers on the books.
More...

Of course, and all firms who have audited statements break that out. I won't mention again that we keep a minimum of $10Mil of Class A capital at all time....oops, I just did. (gotta keep my detractors happy). We have several times that in Class B capital as well.

Don
 
Originally posted by Don Bright


Of course, and all firms who have audited statements break that out. I won't mention again that we keep a minimum of $10Mil of Class A capital at all time....oops, I just did. (gotta keep my detractors happy). We have several times that in Class B capital as well.

Don
More...

Regardless of what others may say about Don's motives, he is forthcoming with information that I feel should be available to all
prospective members/partners.

So far, I have not heard a logical reason why that information should not be disclosed. I can think of many reasons why it is not!

I would find it interesting to have the various firms, BT, L&W,
Van Buren, ECHO etc. post their policy, as stated in their Operating Agreement, about the return of a class B members
money if he/she wishes to withdraw from the partnership.

Without revealing exact figures, they could also state the minimum capital that the class A members keep on hand for net
capital requirements.

Snosur4
 
Originally posted by Speculator1929
10 million capital (good assets) or 10 million cash?
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Straight Cash, and we obviously have much more than that in our own accounts, etc., as "class b" members as well.

Just to clarify.

Don
 
i dont know if this question has been posted before, but does anyone know whats the minimum time that the following firms can hold onto a class b member's initial contribution to the firm?

Echotrade?

lieberwiess?

bright trading?



thanks.
 
Originally posted by Don Bright


Straight Cash, and we obviously have much more than that in our own accounts, etc., as "class b" members as well.

Just to clarify.

Don
More...


Ok...now that wasn't so hard.

It is reassuring to know that the class A members have a considerable interest in the success of the business.

How about the policy on returning the capital of withdrawn class B members?

Snosur4
 
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