Dollar cost average

Peter, what do you mean by “dollar cost average down”?

Thanks

A: Hi John,


Thanks for the question.


Here is an example: you buy 1,000 BHP shares at $40 and the price falls to $30 and by buying another 1,000 at the lower price your average price for all shares is now $35. This is called dollar cost averaging.


I hope this helps.


Regards,

Peter Switzer



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