1. What is Average Share Price?

The average share price is the mean value of all purchase prices over time. It's a key metric for investors to evaluate their cost basis and performance of their investments.

2. How Does the Calculator Work?

The calculator uses the simple average formula:

Where:

• \( \sum \text{Prices} \) — Sum of all share prices
• \( \text{Number of Prices} \) — Count of price entries

Explanation: The equation calculates the arithmetic mean of all input prices, giving equal weight to each price point.

3. Importance of Average Price Calculation

Details: Knowing your average share price helps determine your break-even point, evaluate investment performance, and make informed decisions about buying more shares or selling.

4. Using the Calculator

Tips: Enter all your purchase prices in USD/share, separated by commas or new lines. The calculator will automatically filter out any non-numeric values and calculate the average.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between average price and weighted average price?
A: This calculator uses simple average. Weighted average would account for different quantities purchased at each price point.

Q2: Should I include commission fees in the price?
A: For most purposes, use just the share price. Some investors add fees to get true cost basis per share.

Q3: How many decimal places should I use?
A: Most stock prices are quoted to 2 decimal places (cents), so the calculator rounds to 2 decimals.

Q4: Can I calculate average for multiple stocks?
A: This calculator is for one stock at a time. Calculate averages separately for different stocks.

Q5: What if my prices are in different currencies?
A: Convert all prices to the same currency (preferably USD) before calculating the average.