# How to Calculate Stock Averages

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Many stock market investors buy the same stock at different prices. The stock may have gone down on a bad market day and you want to get more shares at a lower price. Conversely the stock price may have gone up but still has a good future prognosis. If you have bought stock shares at different prices, you will want to determine your average stock price to see how the stock is truly performing.

### Things You'll Need

• Calculator
• Stock Purchase Prices
• Number of Shares

Add the total value of stock purchased on each stock ticket. This should be on your statement or ticket. If you don't have this, take the number of shares and multiply this to the price paid per share. For example, if you purchased 100 shares of XYZ stock at \$15 per share, this would be \$1500.

Add the total value of each purchase together. Assume you bought XYZ three times, each time purchasing 100 shares. You paid the following prices: \$15, \$10, \$12. You would then have spent: \$1500 + \$1000 + \$1200 = \$3700.

Add the total number of shares you have purchased. For example if you bought 100 shares of XYZ stock three times, then you would have 300 shares total.

Divide the total dollar value spent by the total shares purchased: \$3700/300 = \$12.33/ per share.

You might need to consider the cost per transaction paid. If you are paying a commission for buying the stock, then add the commission price into the total amount spent before dividing it by the total number of shares. If you want to know your break-even price, add the estimated sales commission to the total dollar value as well. For example, if you spent \$8 for each of the three trades, then: \$3700 + \$8 + \$8 + \$8 = \$3724 for the total purchase price. If you will spend \$8 on the sale, then your total would be \$3732 / 300 shares = \$12.44 for your break-even price.

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