Final answer:
Excess Margin Securities are those whose value exceeds the margin requirement.
Step-by-step explanation:
Excess Margin Securities are those whose value exceeds the margin requirement.
In finance, the term margin refers to the amount of money or collateral that an investor must deposit with a broker or exchange to cover a portion of the value of an investment. The margin requirement is the minimum amount of margin that an investor needs to maintain. If the value of a security exceeds this margin requirement, it is considered an excess margin security.
For example, if an investor has a margin requirement of 30% and the value of their securities is $10,000, they need to maintain at least $3,000 as a margin. If the value of their securities exceeds $3,000, the excess amount is considered to be excess margin securities.