In the context of securities, what defines the term 'excess equity'?

The term 'excess equity' specifically refers to the amount of equity that surpasses the minimum required equity needed to maintain a margin account. Margin accounts allow investors to borrow funds from brokers to purchase securities, while regulatory requirements specify a minimum level of equity that must be maintained to cover potential losses. When investors have equity that exceeds this minimum requirement, it is referred to as excess equity.

This understanding is crucial because it helps investors gauge their financial leverage and the buffer they have against market fluctuations or potential margin calls, which occur when the value of securities falls below a certain threshold. Other terms in the question, such as the total value of securities owned, liquidation value after debt repayment, or total invested capital do not specifically pertain to the capacity of equity exceeding the required level for margin trading, thereby clarifying why they are not suitable definitions of 'excess equity'.