# What is Price Per Share in stocks?

What is it? Can anyone show me an example?
Asked Dec 12, 2009
Edited Dec 12, 2009
Here's the best explanation I can give you.

The average price per share is determined by dividing the cost of acquiring the shares by the number of shares purchased. The average price per share can seem complicated to determine if an investor has purchased different quantities of a stock at different prices. An example of determining an average price per share would be a purchase of 150 shares of XYZ Corp. at \$10.58 per share and 300 shares at \$8.96 per share. What is the average price per share of the 450 shares? In this case the average price per share is determined by dividing the total cost of the shares (\$4,275), by 450 (the number of shares purchased). Using this simple formula the average price per share paid for the XYZ Corp. was \$9.50. The average price per share is important to know for tax purposes and the average price per share also determines the break-even point for a stock.
Answered Dec 14, 2009

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