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

Dedicated capital

Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value.

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