Math to Show DCA

Let's say you invest in Bob's Oddities, Inc., using DCA. One week, you invest $6. That week, the price for a share is $3. You've bought 2 shares. The next week you again put in $6. This time, the stock price is $2. You've bought 3 shares. Now you have 5 shares for $12--about $2.40 per share on average. But what if, on the first week, you had invested all $12? You would have had only 4 shares, each at $3, for the same money. DCA pays off!

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