PURCHASING POWER RISK " The risk that, because of inflation, the money returned form an investment will not be worth as much as the original amount invested (the returned dollars will not purchase as much as the original invested dollars).
Purchasing power risk
Related: Inflation risk
Pure discount bond
A bond that will make only one payment of principal and interest. Also called a zero-coupon bond or a single-payment bond.
Also called purchasing power risk, the risk that changes in the real return the investor will realize after adjusting for inflation will be negative.
Inflation uncertainty ...
Inflation or purchasing power risk: The possibility that the purchasing power of your money may not keep pace with inflation (e.g. by not investing at all or not investing sufficiently in growth products).
Inflation risk Also called purchasing power risk, the risk that changes in the real return the investor will realize after adjusting for inflation will be negative. Inflation uncertainty The fact that future inflation rates are not known.
purchasing power risk The risk of loss because of inflation. In high inflation periods, the dollar buys less, which in turn reduces the value of a bond or other fixed-income security.
One more risk is called the inflation risk or the purchasing power risk. This happens when the money that you put out will not be coming back to you in an increased amount. It may even be lesser than the original money you put out in an investment.
PURCHASING POWER RISK See inflationary risk. PUT A type of option that enables the investor to sell a fixed number of shares at a set price within a given time period. This is used as a hedge or protection for an existing investment.
The notion that the ratio between domestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies.
Purchasing power risk
Related: Inflation risk
Pure discount bond ...
purchasing power risk The potential risk of loss in the value of cash due to inflation. pure competition A market characterized by a large number of independent sellers of standardized products.
 See also: Expense, Banks, Values, Compensation, Funding
  
|
RSS
