How Do You Spell AVERAGE PRICE PER SHARE?

Pronunciation: [ˈavɹɪd͡ʒ pɹˈa͡ɪs pɜː ʃˈe͡ə] (IPA)

The phrase "average price per share" refers to the average cost of one share of a particular stock. The spelling of this phrase can be broken down phonetically using the IPA transcription system. "Average" is pronounced ˈævərɪdʒ, "price" is pronounced praɪs, and "per" is pronounced pɜr. Finally, "share" is pronounced ʃɛr. The combination of these sounds creates the spelling of the phrase "average price per share," which is commonly used in the financial world when discussing stock prices and investments.

AVERAGE PRICE PER SHARE Meaning and Definition

1. The term "average price per share" refers to a statistical measure used to calculate the average price at which a specific stock or investment has been purchased or sold. This financial indicator is commonly utilized by investors, analysts, and traders to evaluate the performance of their investment portfolio or to determine the cost basis of a particular security.

   To calculate the average price per share, one must add up the total cost of purchasing the shares and divide it by the total number of shares bought. This calculation provides an average value that represents the price at which the shares were acquired.

   The average price per share is an important metric as it helps investors gauge whether they have bought a particular stock at a favorable or unfavorable price. It also assists in determining the potential profitability or loss associated with the investment.

   Moreover, the average price per share helps individuals track the progress of their investments over time. By comparing the average price per share with the current market price, investors can assess whether their position has appreciated or depreciated.

   Furthermore, this indicator is widely used when calculating the cost basis for tax purposes, especially when selling shares. The average price per share is essential in determining the capital gains or losses incurred on an investment and the impact they may have on an individual's tax liability.

   In summary, the average price per share provides investors with valuable insights into the performance of their investments and serves as a fundamental tool in evaluating investment decisions, analyzing portfolios, and determining capital gains/losses.