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LSDefine

Simple English definitions for legal terms

averaging down

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A quick definition of averaging down:

Averaging down is a way of investing where you buy more shares in a company at lower prices than your first purchase. This helps to lower the average cost of your investment.

A more thorough explanation:

Averaging down is an investment strategy where an investor buys more shares of a company at a lower price than their initial purchase, in order to lower the average cost of their investment.

For example, let's say an investor buys 100 shares of XYZ company at $50 per share. The stock price then drops to $40 per share, and the investor decides to buy another 100 shares. By doing so, the investor's average cost per share is now $45, which is lower than their initial purchase price of $50.

Another example could be an investor who buys 500 shares of ABC company at $20 per share. The stock price then drops to $10 per share, and the investor decides to buy another 500 shares. By doing so, the investor's average cost per share is now $15, which is lower than their initial purchase price of $20.

Averaging down can be a risky strategy, as it assumes that the stock price will eventually rebound. However, if the company's financials are strong and the stock price does eventually recover, the investor can potentially make a profit.

average variable cost | averaging up

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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