Which of the following is NOT typically included in the calculation of excess equity?

In the context of calculating excess equity in a margin account, the correct choice states that the initial margin requirement is not typically included. Excess equity is determined by evaluating the current market value of the securities in the account and the current equity in the account, while also considering the regulatory requirements in place.

To understand why the initial margin requirement is excluded: the initial margin requirement is the minimum amount of equity that an investor must deposit when purchasing securities on margin. This requirement is set by Regulation T and typically reflects a percentage of the current market value of the purchased securities. While it establishes the baseline for how much equity must be present to open a position, it does not factor into the calculation of excess equity once the position is established.

Excess equity is essentially the difference between the total equity in a margin account and the amount required to be maintained. It considers the current market value of the assets held, any new equity contributed, and the necessary regulations governing margin accounts, excluding the initial requirement which has already been satisfied. Thus, the initial margin is a starting point, but not a variable that influences the ongoing calculation of excess equity.