Absolute form of purchasing power parity

Definition:

A 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."

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Beneficiary

Term used to refer to the person who receives the benefits of a trust or the recipient of the proceeds of a life insurance policy.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio