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Finance Dictionary and Glossary of Investment Terms
Average Down
Definition 1.
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.
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Definition 2.
A strategy used by investors to reduce the average cost of shares, in which the investor purchases more shares with a fixed amount of capital as the price of the shares decrease. The investor receives more shares per dollar and decreases the average price per share.
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Definition 3.
Buying additional shares of a stock which one holds a position in, and which has dropped in price since the earlier purchase.
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