An example of dollar cost averaging is an employee purchasing shares of his or her company's stock through payroll deduction as part of a retirement plan.

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Dollar cost averaging involves investing a fixed amount of money at regular intervals over a period of time, regardless of the share price. In this case, the employee is investing a fixed amount from each paycheck to purchase shares of the company's stock, which is a form of dollar cost averaging.

An Example of Dollar Cost Averaging Is an Employee Purchasing