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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 powerPurchasing powerThe amount of goods and services which can be purchased by a given unit of currency after taking into account the effect of inflation. Purchasing power can be assessed by tracking an index of consumer prices and comparing different periods, for example the early 1990s and the current time. Inflation will result in reduced purchasing power over a period of time. Purchasing power parity theoryPurchasing power parity theoryA theory of the exchange rate that the rate will adjust to achieve purchasing power parity, in either its absolute or its relative form. Purchasing power parityPurchasing power parityThe notion that the ratio between domestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies. Purchasing power riskPurchasing power riskRelated: Inflation risk Purchasing 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. Further SuggestionsPurchasing power parityRelative form of purchasing power parity Purchasing power Purchasing power parity exchange rate Absolute form of purchasing power parity Purchasing power |
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