dollar cost averaging
DefinitionAn 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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dollar cost averaging is ...
... part of the Mutual Funds and Strategies subjects.
... part of the Mutual Funds and Strategies subjects.
... an essential investing term.
Related Terms
voluntary accumulation plan, accumulation, formula investing
dollar cost averaging appears in the definitions of these other terms on BusinessDictionary.com
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