buying power


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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 ?
Added Humphreys: "Minority buying power is growing at a faster pace than the white consumer market for a number of reasons, such as demographics, increases in educational attainment and entrepreneurial activity."
This increase proved a sizable improvement in buying power for Turks during the high growth period.
Quantum Global, which has been exploring a number of potential partnerships, said that its cooperation with LaSalle allows it access to capital needed to make strategic investments in large real estate assets on behalf of its clients.Country: Switzerland, USA, Sector: Construction/Real EstateType: JVStatus: AgreedComment: The JV to have USD1bn initial buying power.
Jim Abrahamson, the company president for the Americas, said 'We know that we have a great opportunity given our scale and together with the collaboration of our tremendous owners' association, the IAHI, this new procurement programme will help us further leverage our buying power. We have a large powerful system and InnSupply will allow our owners to make procurement decisions that will deliver higher margins by obtaining quality products at highly competitive prices to ensure an experience our guests will love.'
"Ensuring members of the Bellingham/Whatcom Chamber of Commerce & Industry have access to large-group buying power could be the difference that allows those companies to continue providing employee benefits during these difficult economic times."
Although its primary aim is to foster social network ties, the women's potential collective buying power comes handy when mums plan get-togethers and other activities that keep them and their children occupied.
o Franchise offers buying power of the organization and shared advertising expense.
Q If inflation is 2.5% on average over the next 10 years, how much buying power will my private pension lose if I currently get pounds 10,000 per year?
The bill of purchasing power from the private sector increased through January-November 2009 by 7.5 per cent to YR 21.9 billion, up from YR 20.3 billion in 2008.<p>The sum included YR 14.3 billion in costs of buying power and the costs of fuel at YR 7.6 billion.
population."Black, Latina, Asian-American and other multicultural women already wield buying power in excess of $1 trillion and are the primary decision-makers in the vast majority of their homes," said Tatjana Meerman, publisher of Packaged Facts.
The buying power of public sector pay has risen by at least 1.3 per cent over the past year while that in the private sector has fallen.