What is AVERAGING?

1. making a portfolio by investing fixed amounts at fixed intervals. This is done in different securities that are bought when they are cheapest and sold when they are expensive. Refer to constant dollar plan. AKA exponential smoothing.

More On This Topic
  1. Difference Between A Profit Sharing Plan & A Thrift Saving Plan
  2. Is It A Monopoly? Everything You Ever Wanted To Know
  3. Understanding Section 79 Plans With Permanent Life Insurance
  4. Breach Of Contract: What It Is, Types, Examples, & Resolving Them
  5. Ten Cheap Law Schools That Are Actually Good
  6. Four Curious Facts About Blue Sky Laws
  7. Imperialism Definition, Laws, & History: From Rome To Now
  8. 401(K) Types, Loans, Contribution Limits, & Benefits
  9. What Percent of My Portfolio Should I Put into Stock Mutual Funds and Bond Mutual Funds?
  10. When Writing a Business Plan, Don’t Forget the Legal Issues

Related Legal Terms
VALUE AVERAGING, BASKET, MARKET NEUTRAL STRATEGY, PUBLICLY TRADED, ADAPTIVE EXPONENTIAL SMOOTHING, BOND SWAP, CONSTANT VALUE ACCOUNTING, AGGRESSIVE INVESTMENT STRATEGY, BELL-SHAPED-CURVE PORTFOLIO, STOP LIMIT ORDER


Link to This Definition
Did you find this definition of AVERAGING helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary