Dollar-Cost Averaging
Definition:
To invest, as in shares of stock, fixed amounts of money at regular intervals so as to buy more at lower prices ad less at higher prices
Dollar-cost averaging means that if you put the same amount ineach year, you’ll buy more investments, such as shares of a mutualfund, when prices are down and fewer when prices are up. The endresult will be that you’ll pay a lower average price than theactual average price of the investment during that period.
