what is a special memorandum account 
a special memorandum account sma is a brokerage account that is set up in conjunction with a margin account to hold excess margin that is more than is needed to meet maintenance requirements from the margin account the sma preserves the investor s gains and provides a line of credit for future purchases on margin it can also be used to help make up for declines in value of securities in the margin account in the event of a margin call 4