The average price per share by dividing the total amount spent on shares by the total number of shares.
To determine the average price per share over the year, you need the total amount spent on shares and the total number of shares purchased. Calculate this by dividing the total amount spent by the total number of shares. For instance, if you spent $12,000 on 600 shares, the average price per share would be $20 ($12,000 รท 600). Monitoring this average helps assess the overall performance and cost efficiency of your stock investments. It provides insight into the weighted average price at which shares were acquired, considering fluctuations in market prices throughout the year. This metric is valuable for investors analyzing the impact of their buying strategy on the portfolio's cost basis and overall financial performance.