Investopedia

Average Down

Dictionary Says

Definition of 'Average Down'

The process of buying additional shares in a company at lower prices than you originally purchased. This brings the average price you've paid for all your shares down.
Investopedia Says

Investopedia explains 'Average Down'

Sometimes this is a good strategy, other times it's better to sell off a beaten down stock rather than buying more shares.

Articles Of Interest

  1. Buying Stocks When The Price Goes Down: Big Mistake?

    Averaging down is a trumpeted strategy that has merit, but when it is used carelessly, it can amount to throwing money away.
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  4. If I own stock that drops in price is this a sign that I should buy more?

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    Learn more about this statistical measurement used to represent movement between a security and its benchmark.
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