“How do you compute for Average Price?”
This was asked by one of my readers, and let me tell you, I really, totally HATE figures (Math)! Like I always say, the only figure I love is my own (36-24-36! That was BEFORE I went to Yakimix, and the numbers got mixed up. Now it’s 63-42-63). lol. But, hey! I still love my figure!
But this particular question bothered me so much and I wanted to prove to myself that I can do this … I can do Math! Just for once in my life, I would prove to the world I know more than 1+1! 🙂 So, here’s my take:
Market Price is the current stock price. That’s how much the stock is selling for in the market today.
Average Price is the amount you bought the stocks for (taking into consideration the different prices, # of shares and fees per transaction). To illustrate:
Ex. In January, you bought 100 shares of XYZ at 10/share, and the transaction fee was 20. In February, you added 50 more shares of XYZ at 11/share and the transaction fee was 20. In March, you added 200 shares of XYZ at 12/share and the fee was 20.
Step 1: Find the Price per share
Formula: Price + (fee or charges / # of shares) = price per share
January: 10 + (20/100) = 10.20/share
February: 11 + (20/50) = 11.40/share
March: 12 = (20/200) = 12.10/share
Step 2: Find the Average Price per share
Formula: Total # of shares / total sum of the prices per share
350 shares / 33.7 = 10.39 Average price per share
Whew! That wasn’t so bad. I just don’t know if I got it right. Calling all the Einsteins of the Stock Market out there: Correct me now before all my readers quote me on this. haha.
Thanks & God bless,
P.S. 1. COL Financial, Inc. is the recommended Stock Broker of Bro. Bo Sanchez to all his Truly Rich Club members. The TrulyRichClub is a membership Club that he had created to help people achieve Financial Wealth and Spiritual Abundance. It is a private group of individuals who have decided to do something about changing their beliefs and thinking—to gain the abundance mentality they need to change their lives forever. Bro. Bo provides them with the right tools, principles, and strategies to grow in their financial and spiritual life.