When investing in the stock market, you want to have command of some basic math equations which will allow you to determine where exactly your portfolio is on a minute by minute basis. These basic math equations will allow you to make informative decisions on what moves to make within your portfolio so that you can grow your wealth as an investor. One of those simple math equations involves calculating the price per share of some of your stock.
Step 1
Find the total value of your stock. Many brokerage screens will give the total value of the money you have invested in a certain stock. For example, say that you have $10,000 invested in Company X.
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Step 2
Find the total number of shares you own for that company. For example, say you own 250 shares of Company X.
Step 3
Divide the total value of the stock, by the total number of shares. Using the example, the equation reads:
Value of Stock / Number of Shares = Price per Share
$10,000 / 250 = $40 per share.
Tip
Remember to use the current value of the stock, and not the price you paid. This is because stock is traded on a constant basis while the market is open and the value may go up or down.
This equation can be very helpful if you have bought stock at several different price points. By taking the overall value and dividing it by the shares owned, you can get the "dollar cost average" per share. This means that average price which you paid for the stock.
Things You'll Need
Brokerage account
Calculator (optional)
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