Stock Average Calculator
Calculate the average price of your shares.
Your Average Price
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Why Calculate Your Average Stock Price?
Investors often buy shares of the same stock at different times and prices. This strategy, known as 'averaging,' makes it difficult to know your true cost basis. This calculator solves that problem by computing the weighted average price of all your purchases. Knowing your average price is essential for tracking the real performance of your investment and making strategic decisions about when to sell for a profit.
Frequently Asked Questions (FAQ)
What is an average stock price?
The average stock price, or weighted average price, is the average cost per share of all the shares you own in a particular stock, even if you bought them at different prices and times. It gives you a single break-even point for your entire holding.
How is the average share price calculated?
The average share price is calculated by dividing your total investment amount by the total number of shares you own. The formula is: Average Price = (Total Amount Invested) / (Total Number of Shares).
Why is it important to calculate your average stock price?
Calculating your average stock price is important for understanding your investment's performance. It helps you determine your overall profit or loss, make informed decisions about buying more shares (averaging down), and set realistic price targets for selling.
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