Sentences with phrase «one's average cost per share»

This may provide a greater opportunity to benefit when share prices rise and could result in a lower average cost per share over time (see chart).
This is the basis of dollar cost averaging, which basically means you are lowering the total average cost per share of your stock investment.
This lessening average cost per share will help you gain better overall profits as the market increases over the long term.
You get the benefits of «Dollar Cost Averaging» and you accumulate securities at a lower average cost per share.
If you have multiple purchases and / or sales of a holding, check with your broker for the average cost per share, also known as the «share cost basis».
The practice of investing equal dollar amounts at regular intervals in a particular investment, with the goal of lowering the average cost per share / unit of the investment over time.
It's a strategic way to invest because you buy more shares when the cost is low, so you get an average cost per share over time, meaning you don't have to invest the time and effort to monitor market movements and strategically time your investments.
DCA therefore lessens the risk of investing a large amount in a single investment at the wrong time (i.e. at an inflated price), and in a falling market, the average cost per share becomes smaller and smaller.
To the IRS, you paid $ 2406.95 for 200 shares of XYZ, for an average cost per share of $ 12.03.
It makes sense that your average cost per share is a bit more than what it used to be, since your newest shares were more expensive.
Dollar cost averaging in a fluctuating sideways market lowers the average cost per share purchased.
Increased volatility reduces the average cost per share sold.
By doing so, the average cost per share theoretically is lowered, and the risk associated with making a lump - sum purchase when prices are high is eliminated.
Instead, keep your contributions going to your portfolio to take advantage of the generally lower prices that come with a decline and bring down your average cost per share.
Besides, my average cost per share will come way down once I add to the position.»
With a dividend yield of 4.03 % I don't mind taking an assignment of another 100 shares at $ 50 while I cut my average cost per share substantially.
From a technical standpoint, the «purchased shares» group is correct in terms of tax preparation — your gains or losses will be based on your average cost per share, which includes reinvested dividends.
Schwab shows them as purchases and adjusts the average cost per share accordingly.
What effect, if any, does the dividend reinvestment have on my cost basis and average cost per share?
The average cost per share may also be reduced, which has the possibility to help you gain better overall profits from the market.
Note: the intrinsic value per GYRO share will be diluted with the warrant exercise, by about 14 %, but my economic interest in the company will remain the same and my average cost per share will go down.
However the website displays the average cost per share only for that day.
You can see also, that when I quit investing additional funds in 2000, my average cost per share was around 35.75 each.
The idea behind dollar - cost averaging makes sense: buy more shares when the price is cheap and less when the price is high with the hope of lowering your average cost per share.
You simply capitalize on a lower average cost per share, leading to a lower overall cost over the long term.
My average cost per share for MON is now $ 69.96.
If TLT surprises me and runs above $ 133 and I have to take an assignment on another 1,000 shares, my average cost per share will be much higher and will make it even easier to work the trade for a profit.
And over time, the average cost per share of the security will actually become smaller and smaller, yielding bigger profits.
It's a strategic way to invest, as you buy more shares when the cost is low, so you get an average cost per share over time, meaning you don't have to invest the time and effort to monitor market movements and strategically time your investments.
Dollar - cost averaging will help to ensure that your average cost per share represents both the premiums of a bull market and the discounts of a bear market, as opposed to just the premiums usually paid by investors in a bull market.
While DCA does result in your average cost per share being lower than the average price of the shares over time, in a bear market you can still suffer temporary setbacks.
This method allows for a lower average cost per share than the actual average price per share over the same period.
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