pound cost averaging

pound cost averaging
A method of accumulating capital by investing a fixed sum of money in a particular share every month (or other period). When prices fall the fixed sum will buy correspondingly more shares and when prices rise fewer shares are bought. The result is that the average purchase price over a period is lower than the arithmetic average of the market prices at each purchase date (because more shares are bought at lower prices and fewer at higher prices).

Big dictionary of business and management. 2014.

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  • pound cost averaging — noun (finance) A method of investing by paying regularly a fixed amount for eg units in a particular trust, regardless of the fluctuating market price of the units • • • Main Entry: ↑pound …   Useful english dictionary

  • pound cost averaging — A disciplined investment technique where fixed amounts are invested over regular periods (typically monthly) to accumulate wealth in shares, unit trusts and investment trusts. London Stock Exchange Glossary …   Financial and business terms

  • pound-cost averaging — /ˌpaυnd kɒst æv(ə)rɪdʒɪŋ/ noun the practice of buying securities at different times, but always spending the same amount of money …   Dictionary of banking and finance

  • cost averaging — UK US noun [U] ► STOCK MARKET regular investment of a fixed sum of money so that you buy more shares when the price is low and fewer shares when the price is high: dollar/pound, etc. cost averaging »With pound cost averaging you even out the… …   Financial and business terms

  • Dollar cost averaging — (DCA) is an investment strategy that may be used with any currency. It takes the form of investing equal monetary amounts regularly and periodically over specific time periods (such as $100 monthly) in a particular investment or portfolio. By… …   Wikipedia

  • dollar cost averaging — /ˌdɒlər kɒst æv(ə)rɪdʒɪŋ/ noun ⇒ pound cost averaging …   Dictionary of banking and finance

  • Dollar-Cost Averaging - DCA — The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares are bought when prices are high. Also referred to as a… …   Investment dictionary

  • ПЛАН КАПИТАЛОВЛОЖЕНИЙ ПУТЕМ РЕГУЛЯРНОГО ИНВЕСТИРОВАНИЯ ДОЛЛАРОВ — (constant dollar plan) Принятое в США название плана усреднения издержек в фунтах стерлингов (pound cost averaging), который подразумевает регулярное инвестирование фиксированной суммы денег в приобретение активов. Иногда этот план называется… …   Финансовый словарь

  • constant-dollar plan — The US name for pound cost averaging, i. e. the investment of a specified sum of money at regular intervals in the acquisition of assets. It is sometimes called dollar cost averaging …   Big dictionary of business and management

  • план капиталовложений путем регулярного инвестирования долларов — Принятое в США название плана усреднения издержек в фунтах стерлингов (pound cost averaging), который подразумевает регулярное инвестирование фиксированной суммы денег в приобретение активов. Иногда этот план называется планом усреднения издержек …   Справочник технического переводчика

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