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Dollar Cost Averaging Financial Glossary

What is it? An investment strategy whereby you invest the same amount of money at regular intervals, regardless of share price. Dollar cost averaging allows you to buy more shares when prices are lower and fewer when prices are higher, smoothing out fluctuations of the stock market. Remember, however, that this plan does not guarantee a profit or protect against loss and requires investors to determine whether they can continue to invest over the long term.

Finance Term Definition Added By: Isaiah

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