Articles on: Investment Glossary

Constant Dollar Plan

A system of buying securities at regular intervals with a fixed-dollar amount. If each investment is for the same number of dollars, payments buy more shares when the price is low and fewer when it rises. Over time, and given fluctuating prices, constant dollar plan, also called dollar cost averaging will result in a lower average cost than the average price of the stock.

Updated on: 24/04/2023

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