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How to calculate my average price per share.

post #1 of 8
Thread Starter 
Ok, this is probably 6th grade math, but say I bought the same stock at three different price levels and a different amount of shares each time.

thanks
post #2 of 8
You'll want to check this out:

http://www.hotstockmarket.com/forums...ad.php?t=13816
post #3 of 8
total $/ total shares = Avg PPS

total $ spent on shares (divided by) total shares (equals) Average pps
post #4 of 8
But if you want to work out your 'breakeven' price (the price before you start making profit) don't forget to include the commissions.
Eg If you buy 2 lots of 100 shares at $1 and $2 then you have spent $300 on 200 shares = $1.50 per share average. But you will have paid 2 commissions (and you will pay another to sell). Lets assume that each commission is $10 then your profit only starts if you sell for more than $330. Therefore your breakeven price is not $1.50, but 330/200 = $1.65.
post #5 of 8
Thread Starter 
Excellent, thanks for the info!
post #6 of 8

Hi all,

 

Looking for some real help. I am a personal trainer in the UK looking to set up and deliver CPD courses.

 

I have potential investors to help do this but I need to get my head around issuing shares and making it attractive for them. I am not educated on this area so any help would be great.

 

I am looking to

 

Start Up

 

Show investment for each investor

Price of each share

 

6 years in: model based on 100% return initial investment

 

I then need to show

 

value of shares after 6 years

 

I want to be able to grow this business for the long term. How many shares can I issue / attract further investment from other investors?

 

please help

post #7 of 8

($ per share A) x (# of A shares) + ($ per share B) x (# of B shares) + ($ per share C) x (# of C shares) = Total Spent

 

Total Spent / Total number of shares = Average Price per Share

 

For Example: 

 

You buy 50 shares of XYZ at $20, then later you buy 75 shares of XYZ at $18, finally you buy 25 shares of XYZ for $15. To find the average price per share of your XYZ positions you multiply each set cost per share by the number of shares purchased.

 

50 x $20 = $1000

75 x $18 = $1350

25 x $15 = $375

 

now add the totals together

 

1000 + 1350 + 375 = $27,525

 

divide this number by the total number of XYZ shares you have.

 

50 + 75 + 25 = 150 shares

 

$27,525 / 150 shares = $18.1666666 = average price per share

post #8 of 8

I know that to figure a break-even point one takes the total amount invested including commissions divided by the total number of shares and add the sell commission per share.  But what about a more complex case-

suppose I have an account that was a managed account part of the time and commission based for another time period.

If I add up the total number of shares bought or sold under management and divide it into the total management fees for that period that will give me an average management cost(AMC) per share.  Now if I calculate the average cost per share of a stock excluding management fees but including any commissions and add that to the AMC per share I will have an average cost per share that must be exceeded to make a profit but I still have to account for the sale commission(switched from managed acct to commission based before the sale).  

 

Is this procedure correct so far and if I know that the sale commission will be 2%  how do I complete the calculation for a break-even

point ?

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