purchasing powerpur·chas·ing power
- The ability to purchase, generally measured by income.
- The value of a particular monetary unit in terms of the goods or services that can be purchased with it.
- (economics) The amount of goods and services that can be bought with a unit of currency or by consumers.
- High interest rates are affecting the purchasing power of homeowners.
- The exchange rates do not always reflect true differences in the purchasing power of currencies.
- (business) The ability of a large collective or company to negotiate more favourable prices and terms than a smaller group or company.
- Large supermarkets usually have better purchasing power than small, local shops.
purchasing power - Investment & Finance Definition
- The amount of goods or services that a defined amount of money can buy. Purchasing power can be used as a proxy for measuring inflation. As inflation rises, purchasing power erodes.
- How much money someone can invest in a stock or financial market by using the maximum margin (amount of money that can be loaned) that the brokerage firm makes available.