Dollar cost averaging helps investors avoid the problem of buying high and selling low.

Question

Quizplus · Accepted Answer

Dollar cost averaging involves investing a fixed amount of money at regular intervals, regardless of the market conditions. This means that investors will buy more shares when prices are low and fewer shares when prices are high. This strategy helps to smooth out the impact of volatility on the overall investment and reduces the risk of buying at a high point and selling at a low point.

Dollar Cost Averaging Helps Investors Avoid the Problem of Buying