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Dollar cost averaging

• Is the practice of purchasing securities at periodic intervals with fixed dollar amounts regardless of market conditions. The investor does not intend to purchase an equal number of shares at each interval.

• Systematically investing the same amount of money in the same stock or group of stocks.

• A technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price; thus purchasing more shares when prices are low, and fewer shares when prices are high. Over time, the average cost per share of the security will become smaller. This method attempts to lessen the risk of investing a large amount in a single investment at the wrong time. Used with Mutual Funds and Dividend Reinvestment Plans.

 
 

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If you really put a small value upon yourself, rest assured that the world will not raise your price. - Author Unknown

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