2 lots of the same shares at different prices - Aussie Stock Forums

# Thread: 2 lots of the same shares at different prices

1. ## 2 lots of the same shares at different prices

90 shares @ \$31.00 = \$2,790
70 shares @ \$24.00 = \$1,680
Total is 160 shares for \$4,470

At what price do I sell to break-even?

I worked it out to be about \$27.94?!

2. ## Re: 2 lots of the same shares at different prices

Originally Posted by bonkerrs
90 shares @ \$31.00 = \$2,790
70 shares @ \$24.00 = \$1,680
Total is 160 shares for \$4,470

At what price do I sell to break-even?

I worked it out to be about \$27.94?!
Correct

4. ## Re: 2 lots of the same shares at different prices

Originally Posted by beamstas
Correct
OK, if we forget about the trading expenses for now. What is the formula to work this work? I thought it was the average price.

5. ## Re: 2 lots of the same shares at different prices

Originally Posted by bonkerrs
OK, if we forget about the trading expenses for now. What is the formula to work this work? I thought it was the average price.
Total Cost
Divided by no of shares

6. ## Re: 2 lots of the same shares at different prices

Originally Posted by beamstas
Total Cost
Divided by no of shares
Brad, thanks! Think I'm looking too hard Big Friday night for me... lookng at calculations.

7. ## Re: 2 lots of the same shares at different prices

The level of intellectuality on display here... just astonishing.

BTW, are you averaging down or pyrmiding up?

8. ## Re: 2 lots of the same shares at different prices

Originally Posted by skc
The level of intellectuality on display here... just astonishing.
That was a compliment. Im 100% sure of it

9. ## Re: 2 lots of the same shares at different prices

Originally Posted by skc
The level of intellectuality on display here... just astonishing.

BTW, are you averaging down or pyrmiding up?
Intellectuality???? Krudd is that you?

10. ## Re: 2 lots of the same shares at different prices

Originally Posted by beamstas
That was a compliment. Im 100% sure of it
A little harsh... but I guess I had it coming

11. ## Re: 2 lots of the same shares at different prices

Originally Posted by bonkerrs
OK, if we forget about the trading expenses for now. What is the formula to work this work? I thought it was the average price.
average price only works if you bought the same amount of shares each time.

12. ## Re: 2 lots of the same shares at different prices

Originally Posted by jono1887
average price only works if you bought the same amount of shares each time.

wrong

13. ## Re: 2 lots of the same shares at different prices

Light intellectual banter incredibly difficult after a few schooners I see

14. ## Re: 2 lots of the same shares at different prices

Originally Posted by jono1887
average price only works if you bought the same amount of shares each time.
Agreed...If you dont want to use a calculator.

15. ## Re: 2 lots of the same shares at different prices

Originally Posted by nunthewiser
wrong

Beamstas is correct... but my statement is not wrong.

If you bought the same no. of shares each time... then the average price is sufficient (when not taking into account brokerage)

16. ## Re: 2 lots of the same shares at different prices

Originally Posted by jono1887
average price only works if you bought the same amount of shares each time.
Originally Posted by jono1887
Beamstas is correct... but my statement is not wrong.

If you bought the same no. of shares each time... then the average price is sufficient (when not taking into account brokerage)
What are you talking about? What does it matter how many shares you brought each time?

100 @ \$1.50 = \$150
100 @ \$0.50 = \$50
= \$200 for 200 = \$1.00 each ave price.

150 @ \$1.10 = \$165
50 @ \$0.70 = \$35
= \$200 for 200 = \$1.00 each ave price.

17. ## Re: 2 lots of the same shares at different prices

Hi guys, this is a really basic spreadsheet to help you work out your average entry price. Doesn't include brokerage or any other costs, but by all means have a play with it to include these if you see fit.

Will work with Excel & Open Office, and I think Google docs (though I haven't used it with Google docs).

Enter the details of the number of shares bought and the price paid in the yellow cells, other cells should calculate automatically for you.

18. ## Re: 2 lots of the same shares at different prices

Originally Posted by nomore4s
What are you talking about? What does it matter how many shares you brought each time?

100 @ \$1.50 = \$150
100 @ \$0.50 = \$50
= \$200 for 200 = \$1.00 each ave price.

150 @ \$1.10 = \$165
50 @ \$0.70 = \$35
= \$200 for 200 = \$1.00 each ave price.
I was making a comment on using averages. for your second example, if you were to use averages - the average price would not work as you have purchased a different number of shares each time. The average price is \$0.9 - I have no idea how you obtained \$1.00 from getting the average.

If you remember from HS, average is the sum or the 2 prices divided by 2. The method you used - which is correct when you have different no. of shares is not a calculation of average price.

19. ## Re: 2 lots of the same shares at different prices

Originally Posted by jono1887
I was making a comment on using averages. for your second example, if you were to use averages - the average price would not work as you have purchased a different number of shares each time. The average price is \$0.9 - I have no idea how you obtained \$1.00 from getting the average.

If you remember from HS, average is the sum or the 2 prices divided by 2. The method you used - which is correct when you have different no. of shares is not a calculation of average price.
Mate, you can't use that formula to work out your average price. We'll try again.

150 @ \$1.10 = \$165
50 @ \$0.70 = \$35
=150 + 50 = 200
= \$165 + \$35 = \$200
= 200 shares for a cost of \$200 - agreed?

This is what you are doing:
\$1.10 + \$0.70 = \$1.80 / 2 = \$0.90
But this is incorrect because - \$0.90 x 200 = \$180 but the shares have cost you \$200. If you work out your ave price like this you will falsify your results.

To get your average price you divide the total cost by the total number of shares not the sum of the purchase prices divided by the number of parcels brought.

20. ## Re: 2 lots of the same shares at different prices

Originally Posted by bonkerrs
At what price do I sell to break-even?
Jone, read the clue in the OP

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