dollar cost averaging
Definition
An investment strategy designed to reduce volatility in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving. Thus, as prices of securities rise, fewer units are bought, and as prices fall, more units are bought. also called constant dollar plan.
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Related Terms
averaging, value averaging, periodic payment plan, voluntary accumulation plan, accumulation, formula investing
'dollar cost averaging
' appears in the definitions of these terms on BusinessDictionary.com
cost averaging
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