Average Up

Submitted by Sharemarket News on 18 April, 2011 - 17:54

When you average up, you buy equal numbers of shares at higher prices than previous purchases. As a result, the average price per share increases as well as investor stock size. The overall cost basis is lowered. For example, if an investor buys an equal number of shares at $10, $20, $25 and $35, the average cost basis will be $22.50.

Glossary List

Recommended Websites