Furniture, fixtures and office equipment and leasehold improvements Furniture, fixtures and office equipment and leasehold improvements are recorded at cost. Depreciation of furniture, fixtures and office equipment is computed using an accelerated method over estimated useful lives ranging from 5 to 7 years. Amortization of leasehold improvements is computed using the straight-line method over the remaining term of the associated lease. In the normal course of business, the Company purchases and sells securities for Company officers and stockholders. These transactions have substantially the same terms as those with unrelated parties.
Management believes that the carrying amount of cash is a reasonable estimate of fair value.
Use of estimates The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying statement of financial condition are based upon management's evaluation of the relevant facts and circumstances as of the date of the statement of financial condition. However, actual results may differ from the estimates and assumptions used in preparing the accompanying statement of financial condition. Pursuant to Rule 15c3-3 of the Securities and Exchange Commission, the Company did not have a deposit requirement. The balances shown as receivables from and payables to brokers and dealers, customers and clearing organizations represent amounts due in connection with normal trading transactions executed for customers or the Company.