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.

Sometimes this is a good strategy, other times it's better to sell off a beaten down stock rather than buying more shares.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • average — /ˈævrɪdʒ/ (say avrij), /ˈævərɪdʒ / (say avuhrij) noun 1. an arithmetical mean. 2. a quantity intermediate to a set of quantities. 3. the ordinary, normal, or typical amount, rate, quality, kind, etc.; the common run. 4. Commerce a. a small charge …   Australian English dictionary

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  • Average — An arithmetic mean of selected stocks intended to represent the behavior of the market or some component of it. One good example is the widely quoted Dow Jones Industrial Average, which adds the current prices of the 30 DJIA s stocks, and divides …   Financial and business terms


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