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Could someone please help me with calculating the "Weighted Average Stock Price" if you buy partial positions at different prices? For instance, I own ZTS at the following:
[email protected] $31.59 AND
[email protected] $29.35

I'm trying to figure out the weighted avg price of my entire position. Any assistance is greatly appreciated. Thanks in advance


Mbenji
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No. of Recommendations: 2
Hi MBenji,

It's the average share price taking into account the size of both buys. Since you bought five times as many more expensive shares, you need to take that into account somehow.

Find your total number of shares: 100 + 20 = 120

"Weight" your positions according to share size:

100 sh x $31.59 = $3159

20 sh x $29.35 = $587

Total those values and then divide by the total weight (the total number of shares owned):

$3159 + $587 = $3746 / 120 shares = $31.22 weighted average price per share


Peter
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