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Price Per Share Formula:
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Price per share represents the average cost of each individual share when purchasing multiple shares of a stock, fund, or other investment vehicle. It helps investors understand their average acquisition cost.
The calculator uses the simple formula:
Where:
Explanation: This calculation divides the total investment amount by the number of shares to determine the average price paid per share.
Details: Knowing your average price per share is crucial for tracking investment performance, calculating returns, making informed buying/selling decisions, and understanding your cost basis for tax purposes.
Tips: Enter the total value of your investment in your local currency and the total number of shares purchased. Both values must be positive numbers (total value > 0, number of shares ≥ 1).
Q1: Why is price per share important for investors?
A: It helps investors track their average cost basis, determine profit/loss on investments, and make informed decisions about when to buy more shares or sell existing positions.
Q2: How does this differ from market price per share?
A: This calculates your personal average purchase price, while market price is the current trading price. Your average price may be different from the current market price.
Q3: Should I include fees and commissions in the total value?
A: Yes, for accurate cost basis calculation, include all transaction costs, fees, and commissions in your total investment value.
Q4: Can this calculator be used for multiple purchases?
A: This calculates the average price for a single transaction. For multiple purchases at different prices, you would need to calculate a weighted average.
Q5: What if I want to calculate for different currencies?
A: You can use any currency as long as you're consistent. The result will be in the same currency unit per share.