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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Dataminer1 who wrote (8767)	10/6/1999 10:52:00 AM
From: OldAIMGuy	Respond to of 18928

Hi Bill and Scott, When in Uncle Sam's world, average cost per share is a different value and would never go negative. All selling is done at the previous average cost. New Ave. cost figures are calculated by taking the old ave X previous # of shares and adding to that total the new value of shares purchased. Then the new total value is divided out by the new total # of shares. While the PCA method makes us feel good, it would be disaster at tax time!!! I use Ave. Cost for calculating my taxes on mutual fund accounts. Much easier than LIFO or FIFO. Best regards, Tom