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  1. #1
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    Default LIFO or FIFO when selling shares on ASB?

    Maybe a dumb question, say you have a holding of X company and you bought a parcel of shares at 80c (entry) and a parcel of shares at 54c and 50c. If you sold a portion of your holding does it sell off as an average, or do your oldest shares i.e. those bought at 80c get sold off first - in the instance where the stock price goes to 65c and you want to trim your holding?

  2. #2
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    Quote Originally Posted by Cadalac123 View Post
    Maybe a dumb question, say you have a holding of X company and you bought a parcel of shares at 80c (entry) and a parcel of shares at 54c and 50c. If you sold a portion of your holding does it sell off as an average, or do your oldest shares i.e. those bought at 80c get sold off first - in the instance where the stock price goes to 65c and you want to trim your holding?
    Does it really matter? A share is a share. How a portfolio management system decides to allocate your holding does not make the economics of it any different Can you not also manage this yourself in ASB? I know in Direct you can actually put in your own parameters.

  3. #3
    Speedy Az winner69's Avatar
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    Quote Originally Posted by Cadalac123 View Post
    Maybe a dumb question, say you have a holding of X company and you bought a parcel of shares at 80c (entry) and a parcel of shares at 54c and 50c. If you sold a portion of your holding does it sell off as an average, or do your oldest shares i.e. those bought at 80c get sold off first - in the instance where the stock price goes to 65c and you want to trim your holding?
    Now you’ve opened a big can of worms ....
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  4. #4
    Reincarnated Panthera Snow Leopard's Avatar
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    I am not sure that ASB does either. It just adds and subtracts to the totals of volume and price.
    om mani peme hum

  5. #5
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    Quote Originally Posted by Cadalac123 View Post
    Maybe a dumb question, say you have a holding of X company and you bought a parcel of shares at 80c (entry) and a parcel of shares at 54c and 50c. If you sold a portion of your holding does it sell off as an average, or do your oldest shares i.e. those bought at 80c get sold off first - in the instance where the stock price goes to 65c and you want to trim your holding?
    For trading I use either total trade on and off or average cost if buying and selling along the way, keeps it simple.
    Last edited by couta1; 19-08-2020 at 05:23 PM.

  6. #6
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    Surely if trading/declaring income etc - in simple terms, over the year i bought 100 shares of Xyz for $1000 and over the year i sold the 100 shares and received $1100 net (after fees), whether or not that was 1 sell transaction or more

    On ASB it seems to keep a record of all your trades over the years and shows a profit/loss based on all buys and sell over the years as mentioned by some on here previously

  7. #7
    Ignorant. Just ignorant.
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    Quote Originally Posted by Cadalac123 View Post
    Maybe a dumb question, say you have a holding of X company and you bought a parcel of shares at 80c (entry) and a parcel of shares at 54c and 50c. If you sold a portion of your holding does it sell off as an average, or do your oldest shares i.e. those bought at 80c get sold off first - in the instance where the stock price goes to 65c and you want to trim your holding?
    Average cost all the way. Anything else is an administrative nightmare.

  8. #8
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    Quote Originally Posted by GTM 3442 View Post
    Average cost all the way. Anything else is an administrative nightmare.
    Absolutely agree, there is no simpler method, LIFO and FIFO should only be used as dogs names.

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