A strategic investment approach where an investor lowers the average price paid for a company's shares by purchasing additional shares as the price decreases.
Cost basis refers to the original price of an asset and is fundamental in determining depreciation as well as capital gains or losses. Typically, it is the purchase price, but in cases of inheritance, it is the market value of the asset at the donor's death.
An acquisition that is bought, as contrasted with an exchange, gift, or inheritance. Generally, the purchase price serves as the original cost basis.
