2 lots of the same shares at different prices
- Thread starter bonkerrs
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Correct
OK, if we forget about the trading expenses for now. What is the formula to work this work? I thought it was the average price.
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Brad, thanks! Think I'm looking too hard
Big Friday night for me... lookng at calculations.
skc
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The level of intellectuality on display here... just astonishing.
BTW, are you averaging down or pyrmiding up?
BTW, are you averaging down or pyrmiding up?
springhill
Make the drill work for YOU
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That was a compliment. Im 100% sure of it
A little harsh... but I guess I had it coming
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average price only works if you bought the same amount of shares each time.
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Light intellectual banter incredibly difficult after a few schooners I see :
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Agreed...If you dont want to use a calculator.
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Beamstas is correct... but my statement is not wrong.
If you bought the same no. of shares each time... then the average price is sufficient (when not taking into account brokerage)
What are you talking about? What does it matter how many shares you brought each time?
100 @ $1.50 = $150
100 @ $0.50 = $50
= $200 for 200 = $1.00 each ave price.
150 @ $1.10 = $165
50 @ $0.70 = $35
= $200 for 200 = $1.00 each ave price.
Timmy
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Hi guys, this is a really basic spreadsheet to help you work out your average entry price. Doesn't include brokerage or any other costs, but by all means have a play with it to include these if you see fit.
Will work with Excel & Open Office, and I think Google docs (though I haven't used it with Google docs).
Enter the details of the number of shares bought and the price paid in the yellow cells, other cells should calculate automatically for you.
I hope it is helpful.
Will work with Excel & Open Office, and I think Google docs (though I haven't used it with Google docs).
Enter the details of the number of shares bought and the price paid in the yellow cells, other cells should calculate automatically for you.
I hope it is helpful.
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I was making a comment on using averages. for your second example, if you were to use averages - the average price would not work as you have purchased a different number of shares each time. The average price is $0.9 - I have no idea how you obtained $1.00 from getting the average.
If you remember from HS, average is the sum or the 2 prices divided by 2. The method you used - which is correct when you have different no. of shares is not a calculation of average price.
Mate, you can't use that formula to work out your average price. We'll try again.
150 @ $1.10 = $165
50 @ $0.70 = $35
=150 + 50 = 200
= $165 + $35 = $200
= 200 shares for a cost of $200 - agreed?
This is what you are doing:
$1.10 + $0.70 = $1.80 / 2 = $0.90
But this is incorrect because - $0.90 x 200 = $180 but the shares have cost you $200. If you work out your ave price like this you will falsify your results.
To get your average price you divide the total cost by the total number of shares not the sum of the purchase prices divided by the number of parcels brought.
Timmy
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Jone, read the clue in the OP
