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LSDefine

Simple English definitions for legal terms

averaging up

Read a random definition: cost justification

A quick definition of averaging up:

Averaging up is a way of investing in a market that is going up. It means buying the same number of shares at higher and higher prices to lower the average cost of the investment. For example, if you buy the same number of shares at $10, $13, $15, and $18, the average cost per share is $14. This strategy can help investors make more money when the market is doing well.

A more thorough explanation:

Averaging up is an investment strategy used in a rising market. It involves buying equal numbers of shares at successively higher prices to reduce the investment's average cost basis. For instance, if an investor buys an equal number of shares at $10, $13, $15, and $18, the average cost per share is $14.

This strategy is used to increase the potential profit of an investment. By buying more shares at higher prices, the investor is betting that the stock will continue to rise in value. If the stock does continue to rise, the investor will make a larger profit than if they had only bought shares at the lower prices.

For example, let's say an investor buys 100 shares of XYZ company at $10 per share. The stock price rises to $15 per share, and the investor decides to use the averaging up strategy. They buy another 100 shares at $15 per share. The average cost per share is now $12.50. If the stock price continues to rise to $20 per share, the investor will make a larger profit than if they had only bought shares at $10 per share.

averaging down | averment

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General chat about the legal profession.
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does anyone ever think about how we have no idea who everyone else here is? like you guys dont know me at all thats so crazy cause i talked to you more than ppl irl today
i'm a hallucination
the hat man
HopefullyInLawSchool
16:03
isnt r&r a t50?
keep popping benadryls and ill stay online
law school chat roulette
[] baddestbunny
16:04
living out the plot of the movie unfriended in the yale invite-only webinar
You were only invited to round out the numbers anyway lol
Dkk
16:05
I'm too old to r&r, just gunna kms rn.
Dkk
16:05
Gotta get this show on the road.
Dkk
16:05
Lmfao
JumpySubsequentDolphin
16:05
washu stop emailing me while I’m waiting for a decision challenge
[] baddestbunny
16:05
I'm not in their webinar I just thought it would be a funny thing to have happen
[] baddestbunny
16:05
bc I have a sense of whimsy and imagination
Ah, youre a worm gorl'
shaquilleoatmeal
16:07
battle of the bunnies
How bout dat ASU wave
letsseehowitgoesnow
16:08
bunny hows it looking out there?
[] baddestbunny
16:08
I just think it's weird when a make a joke about everyone in the yale webinar being tortured by a malevolent spirit and someone says you only got invited to round out the numbers
why
go off queen
[] baddestbunny
16:09
which number am I rounding out? 5'4 women who deserve to be tortured?
someone invited to the yale webinar would get it
[] baddestbunny
16:10
if you don't get invited to the yale webinar canada sends you an email letting u know you qualify for MAID
what's that
Send MA ID
BulbasaurNoLikeCardio
16:16
LawHub blocking me from status checker, guess I ain't going to law school now
"Go touch grass" - Lawhub
BulbasaurNoLikeCardio
16:17
Pretty much lol
BulbasaurNoLikeCardio
16:18
Even though its only second check of the day
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