average down


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Average down

A strategy used by investors to reduce the average cost of shares, in which the investor purchases more shares with a fixed amount of capital as the price of the shares decreases. The investor receives more shares per dollar and decreases the average price per share.

Average Down

To buy more shares in a publicly-traded company in which one already owns shares after the stock price has gone down. Averaging down lowers the average price at which one buys the stock, which, if the price goes back up, will increase one's profit when one sells the stock. However, averaging down carries the risk that the stock will continue to decline.

average down

To purchase shares of the same security at successively lower prices in order to reduce the average price at which the stock was acquired. If an investor buys 100 shares of Disney common stock at $40 per share and the price subsequently falls to $30 per share, the purchase of an additional 100 shares would average down the investor's cost to $35 per share. Opponents of this strategy argue that the investor is simply throwing good money after bad and would be better advised to sell the stock, having realized that a mistake had been made to begin with. Compare average up.
References in periodicals archive ?
9 months, and highest average down payment, $3,911.
The average down payment in dollars was $57,710 in the first quarter.
stocks tumbled on Monday, pushing the Dow Jones industrial average down more than 320 points after reports of sluggish U.
I thought Aston made the Cygnet to get its Co2 average down but surely it didn't need to anyway?
On Wall Street, investors were unnerved by concerns over unemployment and the stability of financial firms in Europe, sending the Dow Jones Industrial Average down 0.
stocks plunged Monday, with the Dow Jones Industrial Average down to its lowest close since May 27, after a downward revision of the World Bank's 2009 global growth forecast reminded investors that economic recovery may take longer than hoped.
Between January 1 and April 17 there were 58 all-weather evening fixtures that generated 39,138 racegoers - basically averaging 675 people, which is going to drag your average down because they weren't there in 2007.
But stocks plunged again yesterday, with the Dow Jones Industrials Average down about 350 points amid growing fears that the government's financial rescue plan might not be enough to ward off a recession.
But stocks plunged again yesterday, with the Dow Jones Industrials Average down about 350 points, amid growing fears that the government's financial rescue plan might not be enough to ward off a recession.
The purchasers of the site were able to average down the price/buildable s/f through the procurement of 14,000 s/f of inclusionary air fights.
Time off: Second baseman Adam Kennedy, his average down to .

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