buying power


Also found in: Dictionary, Legal, Acronyms, Wikipedia.

Buying power

The amount of money available to buy securities, determined by adding the total cash held in brokerage accounts and the amount that could be spent if securities were margined to the limit.

Buying Power

Money in a margin account that an investor has available to purchase securities. An investor with a margin account has buying power if the market value of securities placed as collateral in the margin account does not drop below a predetermined level. For example, if one has $10,000 in collateral in a margin account and the account has a maintenance level of 25%, one's buying power is $40,000. See also: Margin call.

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.
References in periodicals archive ?
Researchers contend that as African Americans' buying power expands, business-to-consumer firms can be expected to devote more resources toward developing and marketing products that meet the needs and match preferences of African Americans.
Put another way, for example, if we assume that buying power projections of the entire African-American population are based on all African-Americans of all ages, obviously younger children and teens and infants have less buying power per capita than their adult counterparts.
Without realistic prospects of adequate buying power to sustain prices when boomers' retirement plans sell, the cycle must be treated like any other large system that lacks a critical component.
Many inner-city neighborhoods suffer from "outshopping" because the neighborhoods have too few retail stores to meet the demand and tap the buying power of their own residents.
When he announced his investigation last week, the Director General of Fair Trading, Mr John Bridgeman, said: "Over the past few months a number of concerns have been raised about the level of buying power the major supermarkets are able to exercise.
Since 1975 the buying power of minimum wage earners has slipped.
SACRAMENTO -- The California Department of General Services (DGS) today announced a new statewide pharmaceutical contract that will save the state nearly $18 million by leveraging the buying power of several state agencies acting as a single buyer.
The Selig Center at the University of Georgia projects the combined buying power of African Americans, Asian Americans and Native Americans to account for 14.
According to findings from the Competition Commission report on the bids for Safeway, Tesco's buying power relative to rivals had widened over the last three years, he added, while the typical cost price paid by Asda, which had been "slightly above Tesco" in 2000, appeared to be substantially higher" in 2003.
Asian American buying power is estimated at $250 billion in 2002.
When it comes to something new like buying power, facility managers should not underestimate the time and effort needed to prepare senior management to act quickly," said Audin.
They're not buying power, there is no interruptible power, the prices haven't gone up, so they're in fine shape.