Total Transactions Buys and Sells - Maths Question?

[shouldaindex]

Let's say your broker shows the following:

Transaction Value of Shares Bought: $1m
Transaction Value of Shares Sold: $850k

Shares Held - $150k

(Excluding factors like brokerage, tax, dividends etc... This is more a maths question)

If you sold those Shares for $150k, does that definately (mathetmatically) mean you finish with the same amount as you started with?

 

[pixel]

Let's say your broker shows the following:

Transaction Value of Shares Bought: $1m
Transaction Value of Shares Sold: $850k

Shares Held - $150k

(Excluding factors like brokerage, tax, dividends etc... This is more a maths question)

If you sold those Shares for $150k, does that definately (mathetmatically) mean you finish with the same amount as you started with?

Yes, you bought shares for $1M, then sold them for $1M (850k+150k=1M)
So you're square with your $1M cash back. If all of it happened in the same FY, CGT will be zero.

Of course, for the total business P&L calculation, you'll have to bring the brokerage to bear as expenses, Dividends and Franking Credits as earnings. The difference between those two determines Profit or Loss.

 

[shouldaindex]

Situation popped up when I saw someone's trading history for the past 15 years.

They had bought about $10m and sold about $10m over 15 years (recycling about 200k in initial cash, over and over). They had about 200k in shares in their account.

So I figured, the profit would be around 200k, but wanted to make sure.

Of course in practice, dividends, tax would come into play, but was more making sure that equation was correct.

Thanks.