excess margin

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Excess margin

Equity present in an individual's account above the legal minimum required for a margin account or the maintenance requirement at a brokerage firm.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Excess Margin

Cash or securities that one has deposited in a margin account over and above the minimum maintenance requirement. The excess margin is available to be used as collateral for margin loans, or it may be withdrawn and used for any other purpose.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

excess margin

The dollar amount of equity in an investor's brokerage margin account that is in excess of what is necessary for meeting either initial margin or maintenance margin requirements. An investor with $30,000 of unmargined securities has an excess initial margin of $15,000 (with Regulation T margin of 50%) and an excess maintenance margin of $22,500 (if the maintenance requirement is 25%). Excess margin may be withdrawn or used to purchase more securities. See also special miscellaneous account.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
PGP's operations are not consolidated into the Gas Authority's financial statements but operations at PGP move with gas prices and the excess margins are used to repay advances from the Gas Authority each year.
Reforms needed are not entirely aimed for the government to capture excess margins as tax, but to forcibly push banks through policy to lend more liberally to physical-wealth-creating sectors-agriculture and industry.
He concluded that the profiteers will not be allowed to manipulate excess margins by holding supplies to the market.
Investment income, which typically has been viewed as an important source of capital and an extra source of funding for various expenditures in a hospital's capital budget, now is being used to supplement cash generated from operations--as cash collections and excess margins have been strained.
"The stable outlook reflects UMass Memorial's solid market position, strong volume increases, and its ability to improve its operating and excess margins, as well as debt service coverage, at a time when many comparable hospitals are struggling to generate a positive bottom line," S&P wrote in its release.
Key measures to track include earnings before interest, taxes, depreciation, and amortization (EBITDA), the debt service coverage ratio, and operating and excess margins.
"This flexibility would be equipped with excess margins from the EU budget," explained the MEP.an
If distributors are efficient and enjoy high margins because of restrictions on competition, then excess margins produce rents, which are transfers, not deadweight loss.
For the main results, it is assumed that excess margins are half rents and half deadweight loss.
A far greater source of uncertainty stems from not knowing how much of the excess margins reflect rent transfers and how much reflect deadweight loss.
Likewise, excess margins are regarded by Member States as a useful tool in focusing measures designed to improve air quality in the most polluted areas: these provisions will not therefore be modified.
Hillcrest continues to maintain consistent operations as demonstrated by its 101% operating ratio, 7.7% net operating margin (NOM) and 6.6% excess margins on average over the last four fiscal years.