Average Down

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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?

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  3. Five Investing Pitfalls To Avoid, According to Investor's Business Daily

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  4. If I own stock that drops in price is this a sign that I should buy more?

    This is a good question, and the answer has two parts. First, let's address the concept underlying the strategy to which you are referring, and then discuss the validity of this strategy. Buying ...

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