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Chasing the market |
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Chasing the marketPurchasing a security at a higher price than expected because prices are rapidly climbing, or selling a security at a lower level when prices are quickly falling.Chasing the market Similar MatchesPurchasing power of the dollarPurchasing power of the dollarThe amount of goods and services that can be exchanged for a dollar as compared with amount of a previous time period. Purchasing powerPurchasing powerThe amount of credit available for credit trading in a credit, after taking credit into consideration. Purchasing powerPurchasing powerThe amount of goods that money will buy, usually measured (inversely) by the CPI. Purchasing power parityPurchasing power parity1. The equality of the prices of a bundle of goods (usually the CPI) in two countries when valued at the prevailing exchange rate. Called absolute PPP. 2. The equality of the rates of change over time in the prices of a bundle of goods in two countries when valued at the prevailing exchange rate. Called relative PPP. Implies that the rate of depreciation of a currency must equal the difference between its inflation rate and the inflation rate in the currency to which it is being compared. Absolute form of purchasing power parityAbsolute form of purchasing power parityA theory that prices of products of two different countries should be equal when measured by a common currency. Also called the "law of one price." Further SuggestionsPurchasing power parity theoryPurchasing power risk Purchasing power parity Purchasing power parity exchange rate Relative form of purchasing power parity purchasing power |
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