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Average up |
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Average upA strategy used by investors to lower the overall cost of shares by buying as many shares with a given amount of capital in an increasing market. Buying $1000 worth of shares at $30, $35, $40, and $45, for instance, will make the average cost of the shares $37.50.Average up Similar MatchesYield 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. General Average ContributionGeneral Average ContributionThe amount of money paid by each shipper involved in a General Average. 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. General AverageGeneral AverageProvision in maritime law where all shippers on a given voyage would reimburse the ship line in the event of vessel sinking or catastrophic damage. It also provides for the reimbursement to those shippers whose cargo was thrown overboard in order to save the vessel. Average rate of return (ARR)Average rate of return (ARR)The ratio of the average cash inflow to the amount invested. Further Suggestionsexponential moving averageWeighted average maturity With Particular Average (WPA) Average propensity With Average (WA) Nikkei stock average Average daily balance Weighted average remaining maturity Average accounting return Trade-weighted average tariff Dow Jones Industrial Average Average cost Weighted average life Import-weighted average tariff Average propensity to import Average collection period, or days receivables Free of Particular Average Expost average rate of return Average cost Average down Simple moving average Average discount rate Average product Weighted average Coupon average true range bands |
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