What is buying power?Buying Power
The cash in your account you can use to buy stock right now.
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- Stock BasicsWhat Is Buying?
Buying means swapping cash for shares. Your cash goes down and your shares go up, but at the moment you buy, your total assets don't change.
- Stock BasicsDeposits and Withdrawals
Moving money from your bank into your brokerage account is a deposit; moving it back is a withdrawal. You need money in the account before you can buy.
- Stock BasicsWhat Is Selling?
Selling means turning the shares you hold back into cash. In a regular account you can only sell shares you already own.
Related terms
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