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In order to calculate your weighted average price per share, you can use the following formula: In words, this means that you multiply each price you paid by the number of shares you bought at ...
By calculating a company's weighted average number of outstanding shares, we can get a more accurate picture of its earnings.
If you bought a different number of shares with each trade, a simple average of the prices won't be accurate.
Some companies make it trivial for you to calculate average price paid for treasury stock by having a separate line item that details the number of shares and the amount paid.
How to Calculate the Average Return for the Share of Stock in Excel Credit: Next, I need to fill in all the other cash flows I've received from my Microsoft investment.
The article How to Calculate a Company's Weighted Average Number of Outstanding Shares originally appeared on Fool.com. Try any of our Foolish newsletter services free for 30 days .
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