Re: Help Calculating Average Cost of A Stock
If you go by the way ameritrade calculates it...the avg cost would stay the same $3.35
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 Reply to CaTaClyZm - Msg #414 - 01/21/2011 16:16
Help Calculating Average Cost of A Stock
Hi Stock Gurus - I need help calculating average price when purchasing stocks at different levels and selling partially at a loss. Also when doing the oppossite, buying stocks at different intervals and selling partially with profit. My question is what would be the new average price of the stock after the transactions? If any of you can help I would appreciate deeply!
I know how to calculate average price (Total / # of Shares) but when there is partial transaction at profit or loss - I don't how to calculate the avg price anymore and I know it changes just don't know how to calculate.
Example A: Bought Stock XYZ at 100 shares at $3.75, 100 shares at $4.00, 100 shares at $3.50, 100 shares at $3.00, and 100 shares at $2.50
So Average Price for Stock XYZ would be:
((100*$3.75) (100*$4.00) (100*$3.50) (100*$3.00) (100*$2.50) / 500
$1,675 / 500 = Avg Price = $3.35
Now I sold 200 shares at $2.50, what would be the Avg Price for the remaining 300 shares?
Example B: Bought Stock XYZ at 100 shares at $3.75, 100 shares at $4.00, 100 shares at $3.50, 100 shares at $3.00, and 100 shares at $2.50
So Average Price for Stock XYZ would be:
((100*$3.75) (100*$4.00) (100*$3.50) (100*$3.00) (100*$2.50) / 500
$1,675 / 500 = Avg Price = $3.35
Now I sold 200 shares at $4.00, what would be the Avg Price for the remaining 300 shares?
THANKS MUCH!!! |
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