An internet software assists traders in figuring out the common worth of a specific inventory holding after further purchases at completely different worth factors. As an illustration, if an investor initially buys 100 shares at $50 and later acquires one other 100 shares at $40, the software calculates the common buy worth, which on this instance can be $45. This info aids in monitoring portfolio efficiency and potential revenue/loss situations.
Figuring out the common price foundation presents vital benefits for funding administration. It gives a transparent image of an funding’s total efficiency and helps assess the profitability of a selected inventory holding. Traditionally, traders manually calculated common share costs. The appearance of digital instruments streamlined this course of, enhancing accuracy and effectivity. This empowers traders to make knowledgeable selections primarily based on real-time information and market fluctuations. Moreover, understanding common prices facilitates tax reporting and strategic portfolio changes.