What is net capital? What is net assets?

Hello, net capital is a comprehensive risk control index based on the business scope of securities companies and the liquidity characteristics of assets, and the risk adjustment of assets and other projects based on net assets. The net capital index reflects the high liquidity of net assets, indicating the amount of funds that securities companies can realize to meet payment needs and cope with risks.

Generally speaking, net capital is the amount after assuming that all liabilities of a securities company expire at the same time, all existing assets are realized and all liabilities are paid off.

Net assets are assets owned by enterprises and can be freely controlled, that is, owners' equity or equity capital. The net asset value of an enterprise refers to the total assets minus liabilities of the enterprise, which consists of two parts, one part is the capital invested by the enterprise at the beginning, including the premium part, and the other part is the assets created by the enterprise in the course of operation, including the donated assets, which belong to the owner's equity.