Which one of the following statements is correct concerning dollar-cost averaging plans?
A) The goal of dollar-cost averaging is current dividend income.
B) Dollar-cost averaging is an active trading strategy.
C) Dollar-cost averaging is a short- term trading strategy.
D) The goal of dollar-cost averaging is long- term capital appreciation.

Question

Quizplus · Accepted Answer

Dollar-cost averaging is a strategy where an investor regularly invests a fixed amount of money into a particular investment, regardless of its price, with the goal of reducing the impact of volatility and achieving long-term capital appreciation.

Which One of the Following Statements Is Correct Concerning Dollar-Cost