Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

dollar-cost averaging

Read a random definition: Parolee

A quick definition of dollar-cost averaging:

Term: DOLLAR-COST AVERAGING

Definition: When you want to invest your money in something like stocks or bonds, you can use a strategy called dollar-cost averaging. This means that you put in the same amount of money at regular times, like every month or every week. By doing this, you buy more shares when the price is low and fewer shares when the price is high. This helps you avoid buying all your shares at a high price and losing money.

A more thorough explanation:

DOLLAR-COST AVERAGING

Dollar-cost averaging is a way of investing where a fixed amount of money is invested in a particular security at regular intervals.

For instance, if an investor wants to invest $1000 in a particular stock, they can choose to invest $100 every month for ten months instead of investing the entire $1000 at once. This way, the investor can buy more shares when the price is low and fewer shares when the price is high.

Another example is an employee who invests a fixed amount of money from their paycheck into a 401(k) plan every month. This way, they can benefit from the long-term growth of the stock market without worrying about market fluctuations.

Dollar-cost averaging is a strategy that helps investors reduce the impact of market volatility on their investments. By investing a fixed amount of money at regular intervals, investors can buy more shares when the price is low and fewer shares when the price is high. This way, the average cost of the investment is lower, and the investor can benefit from the long-term growth of the market.

doli incapax | dolo

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
14:17
How are the vibes heading into thanksgiving yall?
HopefullyInLawSchool
14:17
@Law-Guy Im feeling kinda happy I applied YM to UCI hoping it helps (:
Wanna give some head
soap
14:18
Cornell
14:19
@HopefullyinLawSchool What's YM?
14:19
oh no
HopefullyInLawSchool
14:19
you mom
WorthlessAttractiveZombie
14:19
Ouch
HopefullyInLawSchool
14:19
your*
14:19
I fear I realized too late
babycat
14:20
another victim claimed
concorde
14:22
pwned
14:22
Might have to send in addendums for that
Dkk
14:26
No wave, so sad.
WorthlessAttractiveZombie
14:28
What are the odds that berk releases later today?
babycat
14:28
@Dkk: And here I thought you were a prophet. Smh.
14:33
@WorthlessAttractiveZombie: 4
WorthlessAttractiveZombie
14:35
@EvolBunny: I will take the odds of 4, very promising
14:38
I'm too drunk to taste this chicken
Dkk
14:38
Lol, I suck I guess. @babycat
LSD+ is ad-free, with DMs, discounts, case briefs & more.