Question:

What are three diffferent methods to determine buying power?

by  |  earlier

0 LIKES UnLike

What are three diffferent methods to determine buying power?

 Tags:

   Report

2 ANSWERS


  1. Buying Power

    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.

    Also referred to as "excess equity."

    For example, if you have $1,000 cash in a margin account and the maximum margin rate is 50%, then your total buying power is $2,000. For a non-margin account, the buying power is equal to the amount of cash in the account.


  2. One aspect is disposable income.

Question Stats

Latest activity: earlier.
This question has 2 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.