Average down

Average Down
Average Down definition :
A strategy used by investors to reduce the average cost of shares, in which the investor purchases more shares with a fixed amount of capital as the price of the shares decreases.

Average down
Averaging down is buying more of a security an investor has already bought at a higher price.

average down
strategy to lower the average price paid for a company's shares. An investor who wants to buy 1,000 shares, for example, could buy 400 at the current market price and three blocks of 200 each as the price fell.

AVERAGE DOWN - A strategy used by investors to reduce the average cost of shares, in which the investor...
AVERAGE DOWNTIME - Expressed in months, the amount of time expected between the expiration of a lease a...

Average Down
A strategy used to reduce the average price paid for a security by buying additional shares of the security at lower prices.
See: Average Up; Dollar Cost Averaging ...

average down: An investment strategy to buy more shares as the price of a stock drops, thereby lowering the average cost of each share in the entire holding.
average maturity: An average time to maturity of securities held by a mutual fund.

Average Down - The process of buying additional shares in a company at lower prices than you originally purchased. This brings the average price you've paid for all your shares down.

Average Down - When you buy the same security at different times and at sequentially lower prices, in effect you are lowering, or averaging down, your cost per share.

Note that your Working Capital is still growing, in spite of falling prices, and examine your holdings for opportunities to average down on cost per share or to increase yield (on fixed income securities).

This includes the available funds, a desire to minimize commissions, and the risk or potential for the stock price to fall which might cause you to minimize the investment or to be prepared to average down if you were confident in the stock.

Purchasers tender their competitive bids on a discount rate basis. The weighted, or adjusted, mean of all bids accepted in Treasury bill auctions.
Average down ...

average down The purchasing of additional shares of a stock that one already holds a position... Average Earnings Increase (AEI) - UK An indicator for earnings growth. The data excludes bonuses, which might distort...

See also: Banks, Saving, Limit Order, Average up, Away from the market