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Question
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.
Answer
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