Series 28 Practice Test 1

10 free Series 28 practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

Series 28 Practice Test 1Tutor mode

Question 1 of 10

Net Capital

Pemberton Securities introduces its accounts to a clearing firm on a fully disclosed basis. It sometimes receives customer stock certificates, which it forwards to the clearing firm the same day. Using the liabilities below, what is Pemberton's minimum net capital requirement under the basic method?

Pemberton Securities — liabilities at month end
Liability	Amount
Accounts payable	$180,000
Accrued expenses	$210,000
Commissions payable to registered representatives	$60,000
Unsecured bank loan	$390,000
Subordinated loan (found satisfactory by FINRA)	$200,000
Deferred income tax liability	$40,000

The firm does not deal for its own account.