Articles on: Investment Glossary

Dollar Cost Averaging

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, dollar cost averaging will result in a lower average cost than the average price of the stock.

Updated on: 24/04/2023

Was this article helpful?

Share your feedback

Cancel

Thank you!