got this statement from Etrade...any significance or is this a customary thing?
i have other accounts,,,brown and ndb,,,and didn't get an email with similar information from them.
E*TRADE Securities, Inc. (the "Company") is subject to the Uniform Net
Capital Rule (the "Rule") under the Securities Exchange Act of 1934,
administered by the Securities and Exchange Commission and the National
Association of Securities Dealers, Inc., which requires the maintenance of
minimum net capital. The Company has elected to use the alternative method
permitted by the Rule, which requires that the Company maintain minimum net
capital equal to the greater of $250,000 or 2% of aggregate debit balances
arising from customer transactions, as defined. At September 30, 2000, the
Company had net capital of $479,036,000 (9.2% of aggregate debit balances),
which was $375,289,000 in excess of its required net capital of $103,747,000.
Under the alternative method, a broker-dealer may not repay subordinated
borrowings, pay cash dividends, or make any unsecured advances or loans to
its parent or employees if such payment would result in net capital of less
than 5% of aggregate debit balances or less than 120% of its minimum dollar
amount requirement. |
