Dollar Cost Averaging Dollar Cost Averaging
Investing equal amounts of money at regular intervals regardless of whether securities markets are moving up or down. This practice reduces average share costs to the investor who acquires more shares in periods of lower securities prices and fewer shares in periods of higher prices. Unlike a contractual plan, dollar-cost averaging is voluntary. (Dollar cost averaging does not assure a profit or protect against a loss. You should consider your ability to continue investing in declining market periods).