Investment Trust Dividends

Cost Price Averaging

The device of “dollar-cost averaging,” which means simply that the practitioner invests in common stocks the same number of dollars each month or each quarter. In this way, he buys more shares when the market is low than when it is high, and he is likely to end up with a satisfactory overall price for all his holdings.

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When the price falls, the yield offered rises, so a falling market is a friend not a foe.

2 Comments

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