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Meaning of "pound cost averaging" in the English dictionary

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PRONUNCIATION OF POUND COST AVERAGING

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GRAMMATICAL CATEGORY OF POUND COST AVERAGING

noun
adjective
verb
adverb
pronoun
preposition
conjunction
determiner
exclamation
Pound cost averaging is a noun.
A noun is a type of word the meaning of which determines reality. Nouns provide the names for all things: people, objects, sensations, feelings, etc.

WHAT DOES POUND COST AVERAGING MEAN IN ENGLISH?

Dollar cost averaging

Dollar cost averaging is an investment strategy for reducing the impact of volatility on large purchases of financial assets such as equities. By dividing the total sum to be invested in the market into equal amounts put into the market at regular intervals, DCA reduces the risk of incurring a substantial loss resulting from investing the entire "lump sum" just before a fall in the market. Dollar cost averaging is not always the most profitable way to invest a large sum, but it minimizes downside risk. In essence, the technique works in markets undergoing temporary declines because it exposes only part of the total sum to the decline. The technique is so-called because of its potential for reducing the average cost of shares bought. As the amount of shares that can be bought for a fixed amount of money varies inversely with their price, DCA effectively leads to more shares being purchased when their price is low and fewer when they are expensive. As a result, DCA can lower the total average cost per share of the investment, giving the investor a lower overall cost for the shares purchased over time.

Definition of pound cost averaging in the English dictionary

The definition of pound cost averaging in the dictionary is a method of accumulating capital by investing a fixed sum in a particular security at regular intervals, in order to achieve an average purchase price below the arithmetic average of the market prices on the purchase dates.

WORDS THAT BEGIN LIKE POUND COST AVERAGING

poultry farmer
poultry farming
poultryman
poultrymen
pounce
pouncer
pouncet box
pound
pound cake
pound coin
pound net
pound note
pound of flesh
pound Scots
pound sign
pound sterling
poundage
poundal
pounding
pour

WORDS THAT END LIKE POUND COST AVERAGING

aging
changing
damaging
discouraging
disparaging
document imaging
encouraging
engaging
imaging
instant messaging
magnetic resonance imaging
managing
messaging
packaging
paging
picture messaging
raging
staging
text messaging
thermal imaging
voyaging

Synonyms and antonyms of pound cost averaging in the English dictionary of synonyms

SYNONYMS

Translation of «pound cost averaging» into 25 languages

TRANSLATOR
online translator

TRANSLATION OF POUND COST AVERAGING

Find out the translation of pound cost averaging to 25 languages with our English multilingual translator.
The translations of pound cost averaging from English to other languages presented in this section have been obtained through automatic statistical translation; where the essential translation unit is the word «pound cost averaging» in English.

Translator English - Chinese

一斤平均成本
1,325 millions of speakers

Translator English - Spanish

libra promedio de costo
570 millions of speakers

English

pound cost averaging
510 millions of speakers

Translator English - Hindi

पाउंड की लागत औसत
380 millions of speakers
ar

Translator English - Arabic

تكلفة الجنيه المتوسط
280 millions of speakers

Translator English - Russian

фунт стоимость усреднения
278 millions of speakers

Translator English - Portuguese

libra custo média
270 millions of speakers

Translator English - Bengali

পাউন্ড খরচ গড়
260 millions of speakers

Translator English - French

étalement du coût de la livre
220 millions of speakers

Translator English - Malay

Purata kos pon
190 millions of speakers

Translator English - German

Pfund Durchschnittskosten
180 millions of speakers

Translator English - Japanese

ポンドのコスト平均
130 millions of speakers

Translator English - Korean

파운드 비용 평균
85 millions of speakers

Translator English - Javanese

Rata-rata biaya rata-rata
85 millions of speakers
vi

Translator English - Vietnamese

chi phí trung bình bảng Anh
80 millions of speakers

Translator English - Tamil

பவுண்டு செலவு சராசரியாக
75 millions of speakers

Translator English - Marathi

पौंड खर्च सरासरी
75 millions of speakers

Translator English - Turkish

Pound maliyet ortalaması
70 millions of speakers

Translator English - Italian

pound media di costo
65 millions of speakers

Translator English - Polish

uśrednianie kosztów funta
50 millions of speakers

Translator English - Ukrainian

фунт вартість усереднення
40 millions of speakers

Translator English - Romanian

jumătate de kilogram de cost de mediere
30 millions of speakers
el

Translator English - Greek

λίβρα μέσου κόστους
15 millions of speakers
af

Translator English - Afrikaans

pond koste gemiddeld
14 millions of speakers
sv

Translator English - Swedish

pound kostnad medelvärdes
10 millions of speakers
no

Translator English - Norwegian

pund koster i snitt
5 millions of speakers

Trends of use of pound cost averaging

TRENDS

TENDENCIES OF USE OF THE TERM «POUND COST AVERAGING»

The term «pound cost averaging» is barely ever used and occupies the 208.933 position in our list of most widely used terms in the English dictionary.
0
100%
FREQUENCY
Unused
2
/100
The map shown above gives the frequency of use of the term «pound cost averaging» in the different countries.
Principal search tendencies and common uses of pound cost averaging
List of principal searches undertaken by users to access our English online dictionary and most widely used expressions with the word «pound cost averaging».

FREQUENCY OF USE OF THE TERM «POUND COST AVERAGING» OVER TIME

The graph expresses the annual evolution of the frequency of use of the word «pound cost averaging» during the past 500 years. Its implementation is based on analysing how often the term «pound cost averaging» appears in digitalised printed sources in English between the year 1500 and the present day.

Examples of use in the English literature, quotes and news about pound cost averaging

EXAMPLES

10 ENGLISH BOOKS RELATING TO «POUND COST AVERAGING»

Discover the use of pound cost averaging in the following bibliographical selection. Books relating to pound cost averaging and brief extracts from same to provide context of its use in English literature.
1
Hindsight
Pound cost averaging has distinct advantages the most important of which is the reduction of risk over time. Does the phenomenon of „pound cost averaging‟ only work with the stock market? Certainly not. „Pound cost averaging‟ works in  ...
Terence O'Halloran, 2011
2
Investing in Shares For Dummies
Pound cost averaging (PCA) is a splendid technique for buying shares and lowering your cost for doing so. The example illustrated in Table 18-1 shows that investors don't find seeing a total cost that reflects a discount off the market value  ...
David Stevenson, Paul Mladjenovic, 2012
3
Investing for Dummies
Pound—cost averaging is the posh name for drip-feeding a fixed sum 0 cash into investments every month. Because this sum automatically goes into the pension fund each month after you set up your plan, it saves you from having to make ...
Tony Levene, 2010
4
Harriman's Financial Dictionary: Over 2,600 Essential ...
... shareholders who join the plan are still paid the cash dividend, but the administrator then uses the cash to buy shares in the company on behalf of the shareholder. Categories: Stockmarkets See also: dividend, pound cost averaging 432 ...
Simon Briscoe, Jane Fuller, 2007
5
Brilliant Investing: What the best investors know, say and do
This is known as pound cost averaging. Pound cost averaging is a way of avoiding the risk that you are investing when the markets are too high. It is also a way of making sure you get to buy a larger quantity of a specific investment when the ...
Martin Bamford, 2010
6
Brilliant Retirement ePub
Most reputable financial advisers recommend pound cost averaging for regular saving into the stock market. There is, however, less agreement as to whether you should drip feed a cash lump sum into the stock market or take the risk and get ...
Nic Peeling, 2013
7
The Fast Track to Financial Independence
... plan – Chapter 6 – A Financial Plan That Works) month in month out, (or alternatively a lump sum at the same time each year) until you reach financial independence. This method is very effective and is called “pound cost averaging” .
Stephen Sutherland and Paul Sutherland
8
The Investor's Guide to Understanding Accounts: 10 Crunch ...
Second, regular investment means that you always buy at a price better than average because of pound cost averaging. Pound cost averaging is best illustrated by a simple example. Suppose a share price in five consecutive months is 90p, ...
Robert Leach, 2004
9
Investing For Dummies Three e-book Bundle: Investing For ...
In the majority of cases, using pound—cost averaging produces an eventual bigger lump sum than investing the same amount in a large lump sum (assuming you had it!), but like everything else in Investing For Dummies, it's not guaranteed .
David Stevenson, Tony Levene, Brian Dolan, 2013
10
Taming the Pound
Pound cost averaging – for balance. This is a method to avoid having to “time” investments. It is handy if you have some idea of the “true value” of the investment because it makes the system work even better. However, it isn't essential. I'm not ...
Kim Stephenson, 2011

10 NEWS ITEMS WHICH INCLUDE THE TERM «POUND COST AVERAGING»

Find out what the national and international press are talking about and how the term pound cost averaging is used in the context of the following news items.
1
Mike Morrison: Income drawdown is finally coming of age
An understanding of some of the theories - reverse pound cost averaging, safe maximum withdrawal rates, sequential risk etc. • Constant ... «Professional Adviser, Jul 15»
2
On the Money: Why delay investing?
... investing all your money into an ISA straight away you can always drip-feed it in monthly as this will take advantage of pound cost averaging. «Dunfermline Press, Jul 15»
3
Investment clinic: how to invest for a child?
This effect, known as 'pound cost averaging', means that long term regular savings can be invested at a risk level higher than would be prudent ... «EveryInvestor, Jun 15»
4
An easy and affordable way to build a nest egg for a child
With a regular savings plan, investors can also benefit from something called pound cost averaging. This means they are buying into the market ... «Hargreaves Lansdown, May 15»
5
DFM looking for adviser 'decumulation project' partners
“The pound cost averaging which you use in the savings phase is actually working against you, so what you actually need to do is start with a ... «FT Adviser, May 15»
6
Can discretionaries rise to the decumulation challenge?
Avoiding the reverse of pound cost averaging is therefore crucial for retiree clients. Whether wealth management firms have the wherewithal to ... «Citywire.co.uk, Apr 15»
7
How much income before you bleed your pension dry?
... pension fund death spiral (also known as "pound cost ravaging" in a nod to this phenomenon's virtuous counterpart, "pound cost averaging", ... «Telegraph.co.uk, Apr 15»
8
Early-bird Isas: invest now to secure higher returns
"Investing regularly should help to reduce market timing risk as you'll end up with 'pound cost averaging', an average entry price that reflects ... «The Week UK, Apr 15»
9
Four reasons to buy your new year Isa now
“Investing regularly should also help to reduce market timing risk as you'll end up with 'pound cost averaging', an average entry price that ... «Yahoo Finance UK, Apr 15»
10
Comment: Stay calm on Isa investment
Investors thus avoid the risk of committing when the stock market is at or near a peak, while reaping the benefit of pound cost averaging – the ... «Scotsman, Mar 15»

REFERENCE
« EDUCALINGO. Pound cost averaging [online]. Available <https://educalingo.com/en/dic-en/pound-cost-averaging>. Apr 2024 ».
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