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SMA stands for: "Special Memorandum Account." Any margin account in which the customer's equity is more than 50% of the current market value of the securities in the account is said to have Regulation T excess equity. The customer may withdraw this excess equity, leave it in the account to be applied against any debit balance or use it to purchase additional securities. The excess equity gives the customer buying power in the account. When you have excess equity in the margin account, it can be credited to a separate account called "special memorandum account". If this figure is ever negative, your account has generated a Reg. T Call.
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