Page 73 - Intelligent Investing (3)
P. 73
What is Buying Power
● The amount of money you have uninvested in your account, it does not count
the money invested in stocks or options
● Let’s say I just open an account and deposit $500. I would have $500 worth
of buying power.
● Here’s the best way I can explain it to you: The money you don’t invest is in
savings/checking account - It’s accessible to you at any time you want to
withdraw or invest
● Once you invest some or all of your money it is in a contract with the company
you bought - Your money for an equity stake in the company you can hold or
sell in the future
