constant dollar plan

constant dollar plan definition - business

constant dollar plan

A formula plan for investing in which a constant dollar amount is kept in stocks, with other investments in bonds or short-term securities. Essentially, this plan forces the investor to sell stocks in rising markets and purchase them in falling markets.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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