dollar cost averaging
noun
: investment in a security at regular intervals of a uniform sum regardless of the price level in order to obtain an overall reduction in cost per unit
called also dollar averaging
Examples of dollar cost averaging in a Sentence
Recent Examples on the Web
If the individual does not continue to contribute, the value of time invested in the market is lost, dollar cost averaging loses its benefit, and any employer match offered is left on the table to name a few negative affects this has.
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David Kudla, Forbes.com, 30 May 2025
Contributing to dollar cost averaging as opposed to trying to time the market helps mitigate risk.
—Earl Carr, Forbes, 25 Mar. 2025
Because most people do not have large amounts of cash to put into the market at one time, dollar cost averaging tends to be the default option.
—Kevin L. Matthews Ii, Fortune, 28 Sep. 2022
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David Kudla, Forbes.com, 30 May 2025
Contributing to dollar cost averaging as opposed to trying to time the market helps mitigate risk.
—Earl Carr, Forbes, 25 Mar. 2025
Because most people do not have large amounts of cash to put into the market at one time, dollar cost averaging tends to be the default option.
—Kevin L. Matthews Ii, Fortune, 28 Sep. 2022
Cite this Entry
“Dollar cost averaging.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/dollar%20cost%20averaging. Accessed 13 Sep. 2025.
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