Series 6 - Investment Company And Variable Contracts Products Representative Exam
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Which of the following statements about dollar cost averaging is true?
If the market prices of shares is up, more shares are purchased
A
If the market price of shares is down, more shares are purchased
B
An equal number of shares are purchased regardless of market price
C
It protects against loss.
D
Explanations
Using the dollar cost average method of investing, if the market price of shares is down, more shares are purchased.