if you buy a stock at a current price, then buy more at another. what price is it at?
meaning for example: like if I buy 100 shares of a stock at 20$. then the stock goes down to say 15$. then I buy another 100 shares at 15$. Does that mean I have 100 shares at 20$ and 100 shares of the same stock at 15$? Does the also mean if I sell I would see 100shares at 20 and 100shares at 15?
- eveLv 69 years agoFavorite Answer
The price of most stock changes constantly while the market is open.
If you buy 100 shares at 20.00 and 100 at 15. you can sell them separately or together since your cost average is 17.5 for 200 shares. You wait until you hopefully make a profit, like 21.88 will give you 25%.
(minus out commissions and any fees)
* What Id do is sell the 15$ shares at 20. or above and wait to sell the 20$ shares at 25.00.if possible..., not only do you make more but lets say you sell the 15$ shares at 20. and the market goes back down to 17. , you now have money to buy more shares.
* to answer your question, I use a broker so my statement indicates everything I buy and sell , the original amt.and the dates(I do buy systematically as well which means $200 each month buys a number of shares, I get told at the time what those prices are - they have to maintain this data for taxes)
- FrankLv 79 years ago
No. You have 200 shares worth $15 each. What you paid for the stock has nothing to do with the current value. The current value is whatever it is trading for now.
Let me change your scenario slightly. 100 shared purchased @$20. Stock drops to $15. 100 shares purchased at $15. Stock goes up to $18. You sell all 200 shares @18.
You paid $2000 (20x100) in your first purchase. You paid $1500 in your second purchase ($15x100). You got $3600 in your sale ($18x200).
$3600 - $2000 - $1500 = $100. You end up with $100 more than you started with.
Of course, if you are paying commissions for the trades (which you do in the real world), then you won't get all of that $100.
- 9 years ago
It doesnt matter what you bought it for when you are selling it. you will get the price of the time when you are selling it. When you are selling it, you will see selling price. You can choose to sell 100 at a time, 200 at a time or whatever you find good for you.
- 4 years ago
I think you've got a great idea to evaluate stocks like that and comparing it to the yield on the 10 year bond. Evaluating by numbers helps take the emotion out of the decision making. I like to compare the cash flow to the equity.