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.
As the two-tier economy continues to reach into all demographic segments, it is likely, according to the research firm's analysis, that the buying power of affluent black households will continue to grow at a relatively rapid pace.
Although buying power is increasing in the African American community, experts say consumers should not mistake that statistic for a sign that the community is becoming wealthier.
Keep in mind that there are obvious risks in comparing the gay community's buying power with other population segments.
The Selig Center for Economic Growth at the University of Georgia tracks the buying power of minorities, defined as personal income that is available, after taxes, for spending on goods and services (also known as disposable income).
Like a group buying power, a PEO typically offers small firms the chance to access a broader range of health care benefits than would otherwise be accessible.
In effect," according to an article by Alan Pittman in the Eugene Weekly, "BPA is buying power from Weyerhaeuser on the market for US$570 a megawatt and selling it back to them through EWEB for US$27 a megawatt.
Nobody has yet shown how there can be enough buying power to produce gains.
LSNs contractually combine the buying power of multi-industry, participating companies with similar purchasing requirements.
Despite their huge buying power, many of America's inner city communities are "under-retailed," according to a new HUD study.
Nearly half the food processing industry is in favour of legislation to curb the buying power of major supermarkets.