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Average down |
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Average downA 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 Similar MatchesAverage daily balanceAverage daily balanceA 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. Moving averageMoving averageMoving averages are one of the oldest and most popular of technical analysis tools. A simple moving average is calculated by adding together the closing prices of a financial instrument over a certain number of days and then dividing the sum by the number of days involved. So, for example, the seven day average for a share price would be calculated by taking seven days worth of data, adding them together and dividing by seven.To calculate the *moving* average:Start by taking the first seven days worth of data and calculating the average value. This is your first point on the moving average chart.Then add the prices for Days 2-8 together and divide by 7. This is the second point on your moving average chart. Continue doing this for Days 3-9, 4-10 and so on, each time plotting the average on the chart. You now have a moving average chart.There are lots of ways of interpreting moving averages. The most basic is to treat a change of direction in the moving average as a signal to buy or sell, so if the moving average has been consistently rising and then it falls, that is a signal to sell.The classical interpretation, used by most technical analysts, is to compare the moving average with the price of the underlying share and to plot them both on the same graph. Before the share price rises above its moving average, buy the share; when it falls below its moving average, sell the share. That is putting it in extremely simple terms, and for a more sophisticated understanding, read one of the many books on the subject. An analyst would normally also consider other types of indicator before making a decision. Dow Jones Industrial AverageDow Jones Industrial AverageOne of the main USA share indices which monitors the movement of 30 industrial companies traded on the New York Stock Exchange.The Dow Jones Industrial Average has just been joined by a new index, the Dow Jones Total Market Index, which covers a much broader range of companies. Average tariffAverage tariffAn average of a country's tariff rates. This can be calculated in several ways, none of which are ideal for representing how protective the country's tariffs are. Most common is the trade-weighted average tariff, which under-represents prohibitive tariffs, since they get zero weight. Yield to average lifeYield to average lifeA yield calculation in which bonds are retired routinely during the life of the issue. Since the issuer buys its own bonds on the open market because of sinking fund requirements, if the bonds are trading below par, this action provides automatic price support for these bonds and they will usually trade on a yield to average life basis. Further SuggestionsFree of Particular AverageAverage cost With Particular Average (WPA) Average collection period, or days receivables Simple moving average Weighted average maturity Weighted average remaining maturity Average tax rate Average accounting return Weighted average life Lipper Mutual Fund Industry Average Average Directional Movement Average propensity IBCs money fund report average Import-weighted average tariff Nikkei stock average Average life Moving Average Convergence/Divergence average price With Average (WA) Arithmetic average (mean) rate of return Average propensity to consume exponential moving average Average up General Average |
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