Rupee value averaging implies investing a hard and fast quantity persistently over an extended time frame in a selected funding which ends up in the typical value of your funding being decrease than the typical market worth.
The common value per share is the(Whole quantity invested / Whole variety of shares)
neha1101:
TCS bought 100 shares at 4200 = 42000 (value)
I perceive this will need to have been a clerical error, for 100 shares bought at ₹4,200 per share, the Whole value can be ₹4,20,000 (not 42,000)
Anyhow, why r u specializing in the gross sales consideration or the positive aspects.
The common value per share is just the variety of shares left * buy worth, or alternatively quantity remaining invested / complete variety of shares unsold
For the remaining 10 shares what would be the common value.
Right here after promoting 90 shares, the typical value per share will nonetheless stay as ₹4,200 per share
And the whole.value or remaining 10 share shall be 10* 4200 = ₹42,000.
So my revenue shall be what
Your revenue within the above state of affairs shall be
90 x (5000-4200) = ₹72,000.
How do you guys arrive at rupee value averaging
Whole quantity invested/ Whole No of shares
Why are u complicated or mixing the price with earnings
Solely your investments / purchases shall be should be thought of for calculating the typical value.Your positive aspects or sale consideration won’t have an effect on or cut back your value in any approach.
Instance:
That is how the typical value calculation works.
Purchase 100 shares @ 100 = 10000Buy 100 shares @ 150 = 15000Sell 50 shares @ 200 = 10000
Variety of shares left(200 – 50) = 150
For the reason that FIFO technique is adopted, the typical value of the remaining 150 shares is calculated as follows
50 shares @ 100 = 5000100 shares @ 150 = 15000
Common value per share = (5000+15000) / 150 shares= ₹133.33 per share
