   
|
|
Average Price Per Share
|
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...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
| |
