ThirdAge Investment Glossary |
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Dollar cost averaging
Long-term investment strategy in which you invest a certain number of dollars at regular intervals, such as monthly or quarterly, rather than buying a certain number of shares of securities. When the price is low, your dollars buy more shares and reduce the average price of all of the shares you own. To be profitable, dollar cost averaging depends upon the price at which you eventually sell the securities to be higher than your average share cost. See also DRIP.
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