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Finance Dictionary and Glossary of Investment Terms
Buying power
Definition 1.
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.
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Definition 2.
The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available.
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Definition 3.
The value of money, as measured by the quantity and quality of products and services it can buy. also called purchasing power.
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