dollar cost averaging
An investment strategy in which a set dollar amount is used to buy additional shares of a security or asset class at predetermined Intervals. Advocates of dollar cost averaging believe that over time the market will rise higher than the average cost per share of the purchases and that attempting to use market timing to decide when to enter or exit the market increases risk. See average up.
Browse by Subjects
market timing
average down
average up
formula investing
See All Related Terms »

salaried partner
banking products
equivalent taxable yield
pre-IPO prospectus
purchasing power risk