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dollar cost averaging
(redirected from Dollar-cost averaging)

   Also found in: Medical, Financial, Encyclopedia, Wikipedia 0.01 sec.
dollar cost averaging
n.
Periodic investment of a fixed dollar amount, as in a particular stock or fund or in the market as a whole, on the belief that the average value of the investment will rise over time and that it is not possible to foresee the intermediate highs and lows.


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Dollar-cost averaging into a stock or stock mutual fund means you will automatically buy more shares when the price is low than you do when the price is high.
While many investing mantras haven't held true in recent history--consider how ineffective the investing trinity of diversifying, buying and holding stocks, and dollar-cost averaging has been over the past decade--there is a discernible rhythm over the long history of the markets.
This strategy also lets you make the most of dollar-cost averaging.
 
 
 
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