Board of Governors of the Federal Reserve System

Beginning 1996, level is the sum of the market value of common and preferred equity for security brokers and dealers. The level of common equity is calculated from CRSP micro data as the sum of shares outstanding times share price at the end of the quarter, using SIC and NAICS codes to identify brokers and dealers. The level of total financial and nonfinancial preferred equity is benchmarked to data from Standard and Poor's and is calculated for other periods using a perpetual inventory method based on transactions data from Thomson Financial and the Standard and Poor's U.S. Preferred Stock Index. Total preferred stock is then allocated to brokers and dealers by applying the brokers and dealers' share of total domestic financial corporate equity to the financial portion of the preferred stock, using a ratio from Standard and Poor's Compustat to split out preferred stock between financial and nonfinancial corporations. Prior to 1996, brokers and dealers' public corporate equities also includes brokers and dealers' closely held corporate equities ( FOF series FL663164123). Unadjusted transactions are the change in the book value level from SEC tabulation of submissions of FOCUS and FOGS reports, Statement of Financial Condition, Liabilities and Ownership Equity, Corporation, sum of Preferred stock (series F1791), Common stock (F1792), and Additional paid-in capital (F1793), less Capital stock in treasury (F1796).