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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

constant dollar plan  

Definition 1.

An investment strategy designed to reduce volatility in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving. Thus, as prices of securities rise, fewer units are bought, and as prices fall, more units are bought. also called constant dollar plan. also called dollar cost averaging.
 
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