dollar averaging


dollar averaging
noun
: a practice of investing a uniform sum in common stocks periodically regardless of the level of prices

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a system of buying securities at regular intervals, using the same amount of cash for each purchase, over a considerable period of time regardless of the prevailing prices of the securities, resulting in having bought the total at an average cost. Also called dollar cost averaging.
[1925-30]

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dollar averaging,
a system of buying securities in fixed amounts of money at regular intervals. By this system, more securities are bought when prices are low and fewer when prices are high, thus keeping the purchase price below average over a period of time.

Useful english dictionary. 2012.

Look at other dictionaries:

  • dollar averaging — noun see dollar cost averaging …   New Collegiate Dictionary

  • dollar averaging — a system of buying securities at regular intervals, using the same amount of cash for each purchase, over a considerable period of time regardless of the prevailing prices of the securities, resulting in having bought the total at an average cost …   Universalium

  • dollar averaging — Investment term for practice of purchasing a fixed dollar amount of a given security at regular intervals …   Black's law dictionary

  • dollar averaging — Investment term for practice of purchasing a fixed dollar amount of a given security at regular intervals …   Black's law dictionary

  • dollar averaging — dol′lar av eraging n. bus a method of investing in securities over an extended time by spending a fixed amount of money at regular intervals, so that more shares are bought at lower prices than at higher ones. Also calleddol′lar cost av eraging • …   From formal English to slang

  • dollar-average — /dol euhr av euhr ij, av rij/, v.i., dollar averaged, dollar averaging. to engage in dollar averaging. * * * …   Universalium

  • dollar-average — /dol euhr av euhr ij, av rij/, v.i., dollar averaged, dollar averaging. to engage in dollar averaging …   Useful english dictionary

  • dollar cost averaging — noun Date: circa 1957 investment in a security at regular intervals of a uniform sum regardless of the price level in order to obtain an overall reduction in cost per unit called also dollar averaging …   New Collegiate Dictionary

  • dollar-cost averaging — ˈ ̷ ̷  ̷ ̷ ˈ ̷ ̷ noun : dollar averaging …   Useful english dictionary

  • Dollar cost averaging — (DCA) is an investment strategy that may be used with any currency. It takes the form of investing equal monetary amounts regularly and periodically over specific time periods (such as $100 monthly) in a particular investment or portfolio. By… …   Wikipedia