Dollar Cost Averaging Is a Formula Plan Which Automatically Causes

question 59

True/False

Dollar cost averaging is a formula plan which automatically causes investors to purchase more shares when the price is low and purchase fewer shares when the price is high.

---

Definitions:

Deposits In Transit

Deposits made and recorded by a company but not yet reflected on the bank statement.

Outstanding Checks

Checks that have been issued by a company but have not yet been cleared or cashed by the recipient.

Discounted Note

A short-term debt security sold for less than its face value that will pay the face value at maturity; it reflects the discounted present value of the future cash flow.

Proceeds

The total amount of money received from a transaction, such as the sale of an asset, before any deductions.