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Net capital = Tentative net capital – Haircuts. Here, $500,000 – $75,000 = $425,000. Haircuts account for market risk. Therefore, A is correct.

A stock loan allows a broker-dealer to borrow securities to meet settlement obligations or support short sales. Unlike repos, which are collateralized cash loans, stock loans involve securities as the borrowing item. This is a common practice in broker-dealer funding operations. Thus, B is correct.

The Financial and Operations Principal (FINOP), licensed via Series 27 or 28, is the only registered principal authorized to certify FOCUS Reports. This responsibility underscores the FINOP’s role in regulatory financial compliance. CEOs may sign other filings, but the FINOP is specifically accountable for this report. Therefore, B is correct.

A stock loan involves borrowing securities, often from institutional investors, to cover delivery obligations or enable short selling. Repos and reverse repos involve cash borrowing/lending secured by securities, while commercial paper is unsecured debt. Thus, C is correct.

The Financial and Operations Principal (FINOP) certifies filings like the FOCUS Report and ensures financial compliance with SEC and FINRA rules. This is a key responsibility of the Series 27 license holder. Thus, B is correct.