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dollar (cost) averaging Definition

dollar (cost) averaging

noun

see average ()

dollar-cost averaging Finance Definition

An investment concept that calls for investing the same amount of money each month in a security. When prices are high, a smaller amount is bought, and when prices are lower, more securities are purchased. Over time, the price averages out and the investor gains by investing regularly, rather than waiting for the right time.

Browse dictionary entries near dollar (cost) averaging

  1. ‹ dollar bond
  2. ‹ dollar bear
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  7. ‹ dolichocephalic
  8. ‹ dolerite
  9. ‹ doleful
  10. ‹ dole out
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