Average down


 

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Average down

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.



Average down

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Weighted average life

Weighted average life

See: Average life


Average product

Average product

The average product of a factor in a firm or industry is its output divided by the amount of the factor employed.


Average daily balance

Average daily balance

A method for calculating interest in which the balance owed each day by a customer is divided by the number of days. See also: Adjusted balance method and previous balance method.


Average life

Average life

Also referred to as the weighted-average life (WAL). The average number of years that each dollar of unpaid principal due on the mortgage remains outstanding. Average life is computed as the weighted-average time to the receipt of all future cash flows, using as the weights the dollar amounts of the principal paydowns.


Moving Average Convergence/Divergence

Moving Average Convergence/Divergence

A technical analysis indicator developed in the 1960s by Gerald Appel which uses moving averages to indicate buy and sell opportunities. In very simple terms, it works like this:Take the difference between the 12 day moving average and the 25 day moving average over a period, and plot the figures on a chart.Draw the 9 day moving average of the previous calculation for the same period on the same chart. (known as the 'trigger line')Sell when the first line falls below the trigger line, and buy when it rises above.MACD works best on volatile stocks, however an analyst would take other indicators into account before making a decision.


Further Suggestions

Weighted average remaining maturity
Average cost
Average propensity
Weighted average Coupon
Average rate of return (ARR)
General Average
moving average
Average collection period, or days receivables
Average cost
average price
Weighted average maturity
General Average Contribution
Average propensity to import
With Average (WA)
Free of Particular Average
Average tax rate
Expost average rate of return
Lipper Mutual Fund Industry Average
IBCs money fund report average
Trade-weighted average tariff
Arithmetic average (mean) rate of return
Yield to average life
Dow Jones Industrial Average
Average Directional Movement
Average accounting return


 
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