Series 7 - General Securities Representative Exam
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An investor owns 500 shares of PSQA corp that were purchased for $44. The stock price has gone down and is now at $22. The investor is still bullish on the stock in the long run and buys 500 more shares at $22. This is known as
Forward Pricing
A
Decreasing Risk
B
Hedging
C
Dollar Cost Averaging
D
Explanations
DCA or dollar cost averaging involves averaging a price over a long period of time often purchasing additional shares at lower prices or making purchases at fixed intervals