buying power investment & finance definition
The
amount of money that is available to fund a purchase. Often people will say
that the dollar doesn’t have the buying power it did many years ago. The term
also is used in the context of taking all the cash held in a brokerage account
and purchasing securities on margin.
See buying power in Wall Street Words
- The amount of liquid funds available for investing. A large amount of buying power indicates that significant funds from investors are available to fuel a bull market.
- The funds in an investor's brokerage account that may be used for purchasing securities. An investor's buying power includes cash balances plus the loan value on securities held in the account.
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