How to determine the average price of my holdings?

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oem7110
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How to determine the average price of my holdings?

Post by oem7110 » Mon May 21, 2007 7:30 pm

Does anyone have any suggestions on how to determine the average price of my holdings in following example?

I invest $1000 for xxx funds on monthly base, and the price is shown below for 1 year. Does anyone have any suggestions?

Jan 100
Feb 95
Mar 90
Apr 85
May 80
Jun 75
Jul 70
Aug 65
Sep 60
Oct 55
Nov 50
Dec 45

Thank for any suggestions
Eric

sluggo
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Post by sluggo » Mon May 21, 2007 8:32 pm

Step 1: calculate the #shares purchased on each trade.

Step 2. add up the total dollars invested.

Step 3. add up the total #shares purchased.

Step 4. divide (total dollars invested) by (total #shares purchased), giving (average dollars per share).

Example:

Trade 1: $500 invested at price = $125.00
Trade 2: $475 invested at price = $25.00
Trade 3: $700 invested at price = $100.00

Calculations:

Trade 1 #shares = $500 / $125 = 4.000 shares
Trade 2 #shares = $475 / $25 = 19.000 shares
Trade 3 #shares = $700 / $100 = 7.000 shares

Total Dollars invested = $500 + $475 + $700 = $1675.00

Total #Shares = 4 + 19 + 7 = 30.000 shares

Average purchase price = (1675.00 dollars invested) / (30.000 shares) = $55.8333 per share

oem7110
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Thank you for suggestions

Post by oem7110 » Mon May 21, 2007 9:08 pm

Thank you
Eric

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