method used by stock market investors and speculators to reduce the cost
of purchases. "Averaging down" means to buy more stock of a given issue at
a price less than the last purchase successively as the price declines.
"Averaging up" means to buy more of a given security at successively
higher prices as prices advance.
This method is employed out of recognition of the fact that the
high and low points of a price movement cannot be exactly predicted.
Averaging, therefore, is a method of insurance against altogether
missing the market. Where
a constant sum is periodically and regularly invested, at whatever prices
prevail at the time of such investment, dollar averaging results, basically
a defensive technique insofar as the problem of price fluctuation is concerned.
This term has three meanings.
1. In the United States, CAPITAL STOCK; SHARE.
ASSENTED SECURITIES, AUTHORIZED CAPITAL STOCK, COMMON STOCK, FULLY PAID
STOCK, GUARANTEED STOCKS, INDUSTRIAL STOCKS, INSCRIBED STOCK, MINING SECURITIES,
NON-ASSESSABLE STOCK, PREFERRED STOCK, PUBLIC UTILITY STOCKS, RAILROAD
STOCKS, TREASURY STOCK, WATERED STOCK.
In Great Britain, debenture bonds, whether issued by a corporation
(company) or the government or a civil division thereof.
For instance, government and municipal loans are referred to as
government or corporation (meaning municipal in England) stock.
Company stock is held and transferred in any multiples of one pound
and sometimes less, while shares are for fixed denominations.
3. In business usage, goods, merchandise, or finished product;
thus, stock of goods.