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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Net Capital

Definition:

When you invest your money with an investment advisory or broker-dealer, you want to make sure they have enough cash on hand to protect you. If they can't scrape together enough money for pizza Fridays, that's not good news for you.

The net capital refers to the minimum amount of cash and financial health a firm or broker-dealer need to have to protect you and other investors.