buying power

buying power definition - business

buying power

  1. 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.
  2. 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.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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