Recording Average Prices

Hi all how do you record the following:

10,000 shares bought at $1 say 1 Jan 2019
10,000 shares sold at $2 say 1 Jan 2020
10,000 shares bought for 60c say 1 Mar 2020

I see some software record only the last purchase so 60c. Other software record all transactions and give you an average price of -40c as a simple example. I prefer the second option and that is how my spreadsheet is set up. What do other do?

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Originally Posted by dabsman

Hi all how do you record the following:

10,000 shares bought at $1 say 1 Jan 2019
10,000 shares sold at $2 say 1 Jan 2020
10,000 shares bought for 60c say 1 Mar 2020

I see some software record only the last purchase so 60c. Other software record all transactions and give you an average price of -40c as a simple example. I prefer the second option and that is how my spreadsheet is set up. What do other do?

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Definitely the -40c ...you got paid for buying them eh

Popular way of looking at it and gives punters warm fuzzies when under water.

But in your example surely the answer is 60 cents. (More so if you spent the $10000 profit on a good piss up or something)

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Originally Posted by winner69

Definitely the -40c ...you got paid for buying them eh

Popular way of looking at it and gives punters warm fuzzies when under water.

But in your example surely the answer is 60 cents. (More so if you spent the $10000 profit on a good piss up or something)

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I have a few shares in this situation now where average price is negative or slightly positive. I dont spend anything from staremarket gains/divvies etc. All pumped back in

I would agree with winner, really can only average your price on the number of share you have now and what you paid for those shares- not what you bought and sold.