purchasing power


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Purchasing power

The amount of credit available for securities trading in a margin account, after taking margin requirements into consideration.

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.

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.

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.

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.
References in periodicals archive ?
But, the market then rebounded and its three indexes edged up, buoyed by the comeback of purchasing power for blue chips, not to mention fast-track speculations in small-sized shares, the report indicated.
They get a greater purchasing power which translates into money saving, they acquire established suppliers (no more need for research which is time consuming) and they take part into a large network.
In the past year, fiscal and social policy had a positive effect on Austrians' purchasing power and helped create a stable consumer confidence, commented Peter Voithofer, director of KMU Forschung.
The number of foreign tourists may fall due to the decline in their purchasing power, he said.
"Another study also revealed that the dinar purchasing power has dropped by 60pc over the past eight years," she said.
The other is the World Bank's International Comparison Program, which calculates purchasing power on nearly one thousand products in about 150 countries.
In its report on wage formation, the Inquiry Committee investigates the development and prospects of earnings, prices, purchasing power and competitiveness.
It was right to tightly link this growthwith the increase of purchasing power of population rather than affordability of the real estate.
"The wage increases will not solve the crisis especially that the previous experiences have shown that no wage increases have helped improve the purchasing power of the Tunisian facing a galloping inflation of over 7%."
CYS Pharma reportedly told Montero that they plan to import more Philippine-made goods into the Kingdom as a result of improved living conditions and rising purchasing power in the Cambodian market.
29 October 2018 - Georgia, US-based employee purchase programme Purchasing Power has closed on its acquisition of the software technology assets of Atlanta, US-based fintech company DoubleNet Pay, Inc., the company said.
Salaried people say that their purchasing power is decreasing, adding that the clothes that they bought last year for the winter from main shops are no more affordable this year.Every year in winter, I use to visit Jamia Masjid Road and other places to purchase items now, 'My purchasing power does not allow me to purchase branded items,' said Arif.' Another visitor Bank road Rashid said that Landa literally means a market that sells loose items at throwaway prices.

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