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<<Since I bought some stock a couple of weeks ago, they have lost considerable value in the recent "correction". I still consider them good stocks and they are now bargain priced. Does "dollar cost averaging" mean that if I buy more of them now, I can "average" the purchase price and cut the basis on my original purchase?>>

Garry --

Yes, in principle. By regularly buying the stock, usually in the same dollar amount, you end up buying more shares when the price is lower and fewer shares when the price is higher.

Note, though, that for tax purposes (i.e. for calculating capital gains or losses), you can't simply average your basis. The IRS will expect you you to specify which shares you're selling when you sell and to figure your gain or loss (and your holding period) accordingly.

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