Hi SS,
In your example of current cost per share, is this the standard way to figure that cost, or are there other variations
I'm not really certain if others have variations on figuring "cost per share", I just use what seems to make "common sense" to me.
I think of it as "all the cash you spent, minus all the cash you got back, divided by the number of shares you currently hold.
If you bought 200 shares for $10, and sold 100 of them for $30, I believe you could say your "cost" on the remaining shares was -$1000. Since you still had 100 shares, you could say your current cost per share was -$10.
If you really wanted something to brag about over a beer, you could sell 199 shares at 30 and tell your buddies you average cost was
-$3970 a share!<g>
Is "average cost per share" figured the same way, or is it another way of saying the same thing?
Current cost per share and average cost per share amount to the same thing in PCA. Each time a buy or sell occurs, it adds or subtracts the amount of the transaction and divides by the number of shares currently held.
Hope this helps. Have fun enlightening the others on the virtues of AIM. Be prepared for a barrage of questions!
Best Wishes,
D1 |
