purchasing power

(redirected from Purchase Power)
Also found in: Dictionary.

Purchasing power

The amount of credit available for securities trading in a margin account, after taking margin requirements into consideration.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Purchasing Power

1. The value of a currency expressed as the amount of goods or services one unit of the currency can buy. Purchasing power is important to inflation, as the higher an inflation rate is, the fewer goods and services one unit of a currency can buy. To measure purchasing power, one must compare it with an objective standard; that is, one might compare how much one dollar can buy now versus how much it could buy 10 year ago. See also: CPI, Purchasing power parity.

2. The dollar amount of securities one can buy on a margin account. Different jurisdictions have different rules on how to measure purchasing power.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

purchasing power

1. Consumer ability to purchase goods and services. Increased purchasing power represents proportionately larger increases in income than increases in the cost of goods and services.
2. The ability to purchase goods and services with a fixed amount of money. Within this narrower application, purchasing power is inversely related to the consumer price index. Increased purchasing power is a signal that future increases in economic activity are likely.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

purchasing power

the amount of goods and services which can be purchased by a specified sum of money, given the prices of those goods and services. The greater the quantity of products which can be bought with, say, £20, the greater is the purchasing power of that sum of money. If prices go up (INFLATION), however, then purchasing power will fall. What is important for people and business is the long-run relationship of prices and the amount of money they have available to spend. If prices double, for example, but because people's wages are INDEX-LINKED, (i.e. related to a PRICE INDEX), wages also double, then purchasing power remains unchanged.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

purchasing power

the extent to which a given monetary unit can buy goods and services. The greater the amount of goods and services purchased with, say, £10, the greater is its purchasing power. Purchasing power is directly linked to the RETAIL PRICE INDEX and can be used to compare the material wealth of an average individual from a previous time period with the present. See INFLATION, PURCHASING-POWER PARITY THEORY.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Manama rises from its 17th rank in the purchase power index of 2015.
In a separate 20-year purchase power agreement, Colorado-based Platte River Power Authority will purchase 12 MW of electricity generated by the Silver Sage project.
They want what electricity utilities and other power producers already have: the right to purchase power from any producer in the system.
Increasing wages regardless of economic growth, rise of productivity, the purchase power and competitiveness of enterprises will bear no effect on businesses and workers, UTICA's Wided Bouchamaoui pointed up.
The most recent manifestation of this in the English courts reached the Supreme Court (which has replaced the House of Lords), involved Sainsbury and concerned use of compulsory purchase powers. The commercial issues were referred to in the Opinion of Lord Phillips in the following terms:- "Each purchased its land in the hope of being able to use it for the purpose of the development.
County council executive members yesterday agreed to use compulsory purchase powers to ensure the construction of a bigger and more modern replacement for the Morrisons supermarket in Blyth town centre.
IN a report in Wednesday's Western Mail, headlined 'Windfarm developer seeks compulsory purchase powers', we wrongly said CRE Engery Ltd, a subsidiary of Scottish Power, owned the Cefn Croes windfarm in Mid Wales.
The Highways Agency is proposing to rely upon its compulsory purchase powers to acquire the land necessary for these major schemes.
COMPULSORY purchase powers could be used to help forward the regeneration of a seafront.
As readers of this column will know from the recent regeneration article, the Government is very keen to promote the use of compulsory purchase powers ( essentially the right to exercise powers to purchase vital land.
Compulsory purchase powers are proposed to buy up properties needed for a huge regeneration scheme in Newcastle.
Councils need to make full use of their compulsory purchase powers in securing benefits for the local community, especially those in need of regeneration and investment".