Investor Glossary-average price per shareInvestor Glossary-average price per shareInvestor Glossary-average price per shareInvestor Glossary-average price per shareInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Average Price Per Share

The HTML to link to this page
 

The average price per share is determined by dividing the cost of acquiring the shares by the number of shares purchased. The average price per share can seem complicated to determine if an investor has purchased different quantities of a stock at different prices. An example of determining an average price per share would be a purchase of 150 shares of XYZ Corp. at $10.58 per share and 300 shares at $8.96 per share. What is the average price per share of the 450 shares? In this case the average price per share is determined by dividing the total cost of the shares ($4,275), by 450 (the number of shares purchased). Using this simple formula the average price per share paid for the XYZ Corp. was $9.50. The average price per share is important to know for tax purposes and the average price per share also determines the break-even point for a stock.



Rate this average price per share definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, deferred revenue, 144a, current ratio, required rate of return, option premium, implied volatility, class C shares, ex-dividend, inflation, per diem, balance sheet, in escrow, cancelled check, margin rate, FICO score, stock split, 1035 exchange, average price per share, retained earnings, real GDP, 1031 exchange, Zero Cost Collar, ex-dividend date, 401a, LIBOR, open position, annual return, stock market close, deferred tax, minority interest, covered put, irrevocable trust, VIX, FTSE, liquidity ratio, wholly-owned subsidiary, APR, diluted share, limit order, command economy, debt service coverage, quality assurance, EBITDA, Key Rate Duration, phantom income, risk management, labor relations, dividends payable


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use